To maintain a position, investors must hold a margin that is a certain percentage of the position's value, known as the maintenance margin. If the margin in your position falls below the maintenance margin requirement, the contract will be forcibly liquidated. HyperPay uses the mark price method to avoid forced liquidations caused by lack of liquidity or market manipulation. This means that your position will only be forcibly liquidated if the mark price falls below the liquidation price for long positions or rises above the liquidation price for short positions.
HyperPay's perpetual contracts offer high leverage. To ensure the safety of all positions, investors must monitor their risk rate.
When the risk rate for a position falls below 10%, the position will be forcibly liquidated, which could result in the loss of all positions and available margin.
Risk Rate Calculation:
Risk Rate =(Account Balance + Total Floating P&L - Total Commission Fee) / Total Used Margin times 100%
(Note: The total commission fee rate is 0.00075, used as a fixed parameter for real-time risk rate calculation.)
Example:
- Suppose a user has a total of 10,000 USDT and uses 1,000 USDT as margin with 100x leverage to open a long position.
- Initial Risk Rate = (10,000/1000 = 1000%)
- If the market price drops and the account balance decreases to 100 USDT:
- Current Risk Rate = (10/1000 = 10%)
- This triggers a forced liquidation.
To minimise forced liquidation events, HyperPay uses the mark price to prevent forced liquidations due to lack of liquidity or market manipulation.