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Gate.io > Help Center > Futures > Perpetual Contract
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Calculation of Bankruptcy Price
Gate.io
Updated at:56 days 11 hours ago
lv

The bankruptcy price is calculated based on the taker fee of the position margin.

When the liquidation is triggered, the system will place the order at the bankruptcy price, which uses the bankruptcy price as the order price for liquidation. If the liquidated position has its market price better than the bankruptcy price, the excess margin will be contributed to the Insurance Fund. Vice versa, if the liquidated position has its market price worse than the bankruptcy price, the Insurance fund of Gate.io will cover the loss gap.

USDT/Quanto Contract:

Bankruptcy Price = (Opening Price ± Margin/Contract Multiplier/Position)/(1 ± Taker Fee) '±' in the formula refers to the direction of the contract, go long refers to '-' while go short refers to '+'

Inverse Contract:

Bankruptcy Price = Position * Average Opening Price * ( 1 ± Taker Fee ) / ( Position ± Margin * Average Opening Price ) '±' in the formula refers to the direction of the contract, go long refers to '+' while go short refers to '-'

Note:

Position refers to the number of contracts. Maintenance Margin Ratio and Contract Multiplier can be viewed in the Contract Details. Taker Fee: 0.075%

For example:

img

Take the picture above as an example, 100 ETC_USDT long position contracts with an average opening price of 2298.95USDT, a margin of 26.57USDT, and a contract multiplier of 0.01ETH.

Then the bankruptcy price of the position is: Bankruptcy Price = (Opening Price ± Margin/Contract Multiplier/Position)/(1 ± Taker Fee) Bankruptcy Price = (2298.95-26.57/0.01/100) / (1-0.075%) Bankruptcy Price ≈ 2274.1 USDT

The bankruptcy price is the order price of liquidation, the same as the reconciled liquidation price.

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