For better user experience, in this article, we'll explain the calculation of the forced liquidation price, the display logic and the corresponding margin adjustment settings in the isolated margin mode.

### I. Isolated Margin mode Forced Liquidation Formula

Long:

Forced Liquidation Price =( Position Margin - Opening Average Price*Order Amount*Order Par value)/(Position*Par Value*(Margin Rate+Taker Rate-1))

Short:

Forced Liquidation Price =( Position Margin + Opening Average Price*Order Amount*Order Par value)/(Position*Par Value*(Margin Rate+Taker Rate+1))

Detail description:

Position Margin= Position value / leverage level. When the leverage increases, position margin needed will decrease; when the leverage decrease, position margin needed will increase.

Margin Rate: the parameter is a fixed constant, varies by the trading pair.

### II. The impact of adjusting leverage on the price of the forced liquidation.

scenario | Forced liquidation price for long position | Forced liquidation price for short posititon | Note |

leverage adjusted from 20 to 40 | No change in the forced liquidation price | No change in the forced liquidation price | 1. Different trading pair have different margin rate. |

leverage adjusted from 20 to 10 | Forced liquidation price will increase | Forced liquidation price will increase | 2. To each trading pair, its margin rate is a fixed constant. |

Details：

After open position in isolated mode, the margin in the already delineated isolated margin has been frozen and can be considered as an invariant.

When user wants to increase the leverage, according to the formula:

Denominator parameters:

The position remains unchanged;

Par value of orders: unchanged;

Margin rate: a fixed constant, unchanged;

Taker rate: unchanged;

Numerator parameter:

Position margin has been temporarily frozen after opening position, remain unchanged;

Opening average price: unchanged;

Order amount: unchanged;

Par value: unchanged;

In summary, whether it is long or short, the increase in leverage after opening a position will not cause a change in the parameters in the numerator or denominator, and therefore there will be no change in the forced liquidation price.

When user wants to decrease the leverage, according to the formula:

Denominator parameters:

The position remains unchanged;

Par value of orders: unchanged;

Margin rate: a fixed constant, unchanged;

Taker rate: unchanged;

Numerator parameter:

Position margin has been temporarily frozen after opening position, remain unchanged; However, according to the defination: Position Margin= Position value / leverage level. When the leverage level decrease, more margin will be needed. In this case, part of available assets in user's derivative account will be automatically transferred to the isolated margin position to meet the increased margin request.

Opening average price: unchanged;

Order amount: unchanged;

Par value: unchanged;

In summary, whether it is long or short, the increase in leverage after opening a position will not cause a change in the parameters in the denominator, but the "Position Margin" in numerator will increase, therefore there will be a larger forced liquidation price.

Please note:

If there is no available assets in derivative account, then no asset would be transferred to the isolated margin position. In this case, the change of leverage will not cause changes in forced liquidatin price.

### How to place an order in isolated margin mode:

In trading page, set as isolated margin mode, other steps are the same as cross margin mode.

On confirmation page, choose if you want automatic margin call function and the times of margin call.

If you want to adjust your margin for isolated mode after opening the position, you can find the icon of order book on the right lower side of your position information page, click and you can adjust your margin. Also, on the left side, you can modify the margin call settings.

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