Liquidation Price Mechanism
For the risk control of Perpetual Contract, 58COIN imposes liquidation price mechanism, the calculation of which is based on Index Price. When the price triggers liquidation price, a liquidation process will be initiated.
For all positions, the Maintenance Margin required = (MM * Contracts * Multiplier/ Opening Price).
This is the minimum amount of margin you must maintain to avoid liquidation on your position. Based on this value, we will calculate the liquidation price of the position.
Where MM (Maintenance Margin)= 0.5%