Every margin order has its own liquidation price which depends on the leverage used for the respective order. The maximum loss that a user can incur is the balance locked for a margin order. If a situation for liquidation arises, CoinDCX will place a market sell order immediately.


 CoinDCX will apply the following rules for liquidation of orders. 


a) Long:

i) Ideal liquidation price = (Entry Price - Entry Price/Leverage)

ii) A safety factor of 7.5% has been applied to take market slippage and order placement latency into account. This will prevent bankruptcy of the user’s account

iii) So, Actual Liquidation Price = Ideal Liquidation Price * (1 + 0.075)


b) Short:

i) Ideal liquidation price = (Entry Price + Entry Price/Leverage)

ii) A safety factor of 7.5% has been applied to take market slippage and order placement latency into account. This will prevent bankruptcy of the user’s account

iii) So, Actual Liquidation Price = Ideal Liquidation Price * (1 - 0.075)