About strong liquidation statements
✅ The core logic of forced liquidation in cryptocurrency security:
In full position mode, the entire balance of your contract account is treated as maintenance margin to prevent liquidation.
As long as you have funds, the system continuously replenishes losses from your account balance, avoiding triggering forced liquidation.
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🔥 Once forced liquidation is triggered (reaching the liquidation price), what happens?
1. The position is forcibly liquidated, and the system forcibly closes the contracts you hold at the liquidation price.
2. The liquidation engine takes over the position, and at this point, you can no longer operate this position.
3. The system will deduct all necessary funds from your account to cover losses, fees, and liquidation protection, etc.
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🧮 Taking practical data as an example:
• Assuming you have 1000U in full position funds, and you opened a long position on BTC with 20x leverage.
• Position value = 20,000U, initial margin = 1000U
• As the price falls, you start to incur losses. The system continuously deducts money from your 1000U account balance to cover the losses.
• If your floating loss reaches 980U, while the maintenance margin is 20U, forced liquidation is triggered.
👉 After liquidation, you will have at most 20U left, but in reality, due to:
• Fees (liquidation fees)
• Slippage (unfavorable market execution during liquidation)
• Deductions from the system insurance fund (in certain liquidation scenarios)
📉 You may end up with only a few dollars, or even close to 0U.
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✅ In summary:
In Binance's full position mode, if you trigger forced liquidation, the account balance will be used to cover the entire position, and you will not be in debt, but you may very likely end up with just a few dollars or even zero.
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If you need help calculating your current liquidation price, liquidation risk, or remaining available assets, you can provide your position data (opening price, leverage, cryptocurrency type, balance, etc.), and I can assist you with the calculations.
