Liquidation occurs when a leveraged position’s equity falls below the maintenance margin requirement. The venue reduces or closes the position to prevent the account from going negative beyond insurance/ADL mechanisms.
Understanding liquidation
Mark price (not last trade) is commonly used for liquidation checks to reduce manipulation from temporary spikes on a single venue. Traders should monitor distance to liquidation and avoid over-leveraging into funding settlements.
Risk parameters differ by market. Review contract specs on ApeX Omni before increasing leverage.