Gate Automatically Upgrades the Liquidation Mode and the Margin Mechanism for Hedging Positions

Dear Gate User:

To further improve user experience and minimize risks, Gate has upgraded the liquidation process and trigger conditions, and hedging positions.

Please note:

To experience the new liquidation mode, your App must be updated to version 6.9 or higher, and make sure there are no positions or pending orders for 1 hour in your futures account.

Please make timely updates to your App.

Existing positions will not be affected if you do not upgrade to the new liquidation mode.



Major changes:

1. Liquidation Trigger Conditions Upgrade
   
   Old: Liquidation is triggered when the mark price hits the liquidation price.
   
   New: Liquidation will be triggered when the maintenance margin level (MMR) falls to 100% or below. In cross margin mode, all positions share the margin, and unrealized PNL are offset and included into the total margin balance calculation, helping reduce the liquidation risk.
   
   
   
   2)Tiered Liquidation Mechanism
   
   Old: All positions are closed immediately once liquidation is triggered.
   
   New: When liquidation is triggered, the engine will calculate if the maintenance margin level goes back to 100% or above at a lower risk limit level. If it does, the liquidation will stop there.
   
   
   
   3）Profit and Loss (PNL) of Positions in Hedge Mode
   
   
   
   Old: In cross margin mode, unrealized PNL and margin occupied of two hedging positions could be offset.
   
   
   
   
   
   New: In cross margin mode, a standard margin will be required for the higher-value position to enter the market. The unrealized PNL are offset and included into the total margin balance calculation. Liquidation will be triggered when the maintenance margin level falls to 100% or below.
   
   
   
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   Gate Team
   
   September 26, 2024