Liquidations
The Blast Futures Exchange risk-management engine is based on rigorous research and testing to ensure fair and orderly liquidations. The Blast Futures Exchange cutting-edge risk model is built to protect both our traders and the exchange.
Margin Requirements
Full Liquidation Margin Ratio
2%
Maintenance Margin Ratio
3%
Liquidation Waterfalls
Blast Futures Exchange utilises a 3-step waterfall structure to process liquidations.
Waterfall #1
When an account's equity falls below the maintenance margin requirement, it will undergo partial liquidation until the account is back above the maintenance margin requirement. While in liquidation, users will not be able to place new orders, cancel orders, or withdraw funds. When the account's equity is back above the maintenance margin requirement, it will no longer be in liquidation.
Waterfall #2
If an account's equity falls below the liquidation margin, the account will be fully liquidated at the zero-price. A portion of the remaining collateral (if any) will go to the Insurance Fund. If Blast Futures Exchange is unable to liquidate the position at a price better than the zero-price, the losses will be taken by the Insurance Fund.
Waterfall #3
If Blast Futures Exchange Insurance Fund equity falls below zero, then opposing positions will be auto-deleveraged at the Insurance Fund zero-price. Auto-deleveraging is the final step taken only when the Insurance Fund equity falls below zero. Blast Futures Exchange takes every possible step to avoid auto-deleveraging and has implemented an algorithm to minimise the impact of auto-deleveraging when it does occur.
Read more about the Insurance Fund.
Zero-price is the price of the position that sets the account equity to zero.
Refer to our Index Price section for more details.
Notes: 1. While Blast Futures Exchange aims to reduce the likelihood of auto-deleveraging to a minimum, it is still possible. 2. The estimated liquidation price is only an estimate. When an account gets liquidated will depend on multiple factors, including the fair price, the performance of all the contracts, and the currency your collateral is in, among other factors. 3. US residents are restricted from using Blast Futures Exchange. 4. None of this is investment advice.
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