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Liquidation is when Roxom automatically closes your position because your collateral is no longer enough to keep it open. It’s a risk control that protects you from going into a negative balance — but it also means you lose the margin assigned to that position.

When liquidation happens

Your position is at risk when your Margin Ratio reaches 100% — this means your equity equals the Maintenance Margin required. On Roxom, you’ll get a warning when your margin ratio approaches 80%, but if it hits 100%:
  1. Your open orders for that contract are cancelled
  2. The system tries to close your position at or above your Bankruptcy Price
  3. If there’s any margin left after closing, it goes to Roxom’s Insurance Fund
  4. If there’s a shortfall, the Insurance Fund covers it so you don’t go negative
Learn exactly how margin ratio, liquidation price, and bankruptcy price work in the Margin & Risk section of our Rulebook.

Example

Position details:
  • You’re long 1 BTC of GOLD/BTC with 10x leverage
  • Initial Margin = 0.1 BTC
  • Maintenance Margin = 0.025 BTC
If losses reduce your equity to 0.25 BTC, your margin ratio is 100% and liquidation will be triggered.

How to reduce your liquidation risk

  • Watch your Margin Ratio — Keep it well below 80%
  • Add more collateral — Increase margin to your position
  • Reduce leverage — Lower leverage decreases margin requirements
  • Use Stop Loss — Set a stop-loss order to exit before you get too close
  • Monitor your positions — Avoid leaving large positions open without monitoring
See how to set stop orders in the Order Types & Execution Rules section of our Rulebook.

After liquidation

If your position is liquidated:
  • It will show as closed in your history
  • Your margin is lost for that position
  • You can keep trading with any remaining available balance in your account
Liquidation protects your account from going negative, but you will lose the margin used for that position.