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    Bankruptcy Price (USDT Contract)
    bybit2021-09-09 14:21:32

    Bankruptcy Price is a price level that indicates you have lost all your initial margin. 

    Upon liquidation, the liquidated position will be closed at the Bankruptcy Price, and this means that you have lost all your initial margin. If the liquidated position has its final liquidation price better than the bankruptcy price, the excess margin will be contributed to the Insurance Fund. Vice versa, if the liquidated position has its final liquidation price worse than the bankruptcy price, the Insurance fund will cover the loss gap.

    Bankruptcy Price (Margin type: Isolated Margin)

    For Buy/Long:

    Bankruptcy Price= Entry Price × (1 - Initial Margin Rate*)

    For Sell/Short:

    Bankruptcy Price= Entry Price × (1 + Initial Margin Rate*)

    *Initial Margin Rate (IMR) = 1/ Leverage

    For example, traders hold a 1BTC Long position with an entry price at 10,000USDT, leverage is 50x.

    Bankruptcy Price= 10,000 × (1 - 2%) = 9,800 USDT

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