Dear KuCoin Users,
To further enhance the user experience, KuCoin Margin has been upgrading the combination model of the Margin Trading Liquidation Mechanism since 10:00 on November 8, 2021 (UTC). It was fully switched to the liquidity provider mechanism at 08:00 on November 26, 2021 (UTC) after stabilization.
Under the new liquidation mechanism, the forced liquidation process will be triggered by the system when users’ debt ratio reaches the liquidation line (97%). Then, the liquidity provider mechanism, instead of the previous secondary market matching mechanism, will take over the positions to deal and repay the debts.
The liquidity provider mechanism can effectively control the occurrence of negative balances and control the dramatic impact of the market caused by large orders.
1. Based on the market situation, the system will possibly use the combination model of the secondary market matching mechanism and the liquidity provider mechanism to take over the positions and repay the debts.
2. After the forced liquidation occurs, the system will take over the positions to close and repay the debts. If there are residual balances, one small part of fees (about 1% of the total positions value) will be charged to protect against the risks of negative balances; the others will be returned to users’ accounts in USDT or liquidated tokens.
3. We will continuously optimize the Margin system! Please stay tuned for our new announcements.
Kind Remind: Debt Ratio is the key to your risk control and survival in the fluctuating market. You can refer to the Debt Ratio is the Key to Affect Your Profit or Loss to learn more about the debt ratio. As PEOPLE’S EXCHANGE, we will continue to optimize and improve the user experience!
Thank you for your support!
The KuCoin Team