What is Liquidation?
Overbit operates an automatic partial liquidation policy for position that is closed to its maintenance margin.
When an open position is getting close to the maintenance margin, the position is partially liquidated to allow more margin. This is also to prevent the position from completely closing.
Maintenance margin in Overbit is set to 0.5%.
Liquidation Price Calculation
Liquidation price for long position
Entry Price x Leverage / (Leverage + 1 - (Maintenance margin x Leverage))
Liquidation price for short position
Entry Price x Leverage / (Leverage - 1 - (Maintenance margin x Leverage))
To prevent auto liquidation process, it is recommended that traders use a stop loss where possible and have enough funds in their account to cover the maintenance margin.