How Does Bitget’s Futures Liquidation Mechanism Work?

Bitget Futures liquidation is a risk-control process that can reduce or close a leveraged position when the account or position no longer meets the applicable maintenance-margin requirement. The process uses mark price and contract risk parameters rather than relying only on the last traded price. Liquidation is not the same as a trader voluntarily closing an order, and it can result in a different fill outcome from a planned stop-loss.

What triggers liquidation?

Bitget’s published position-risk explanation describes maintenance-margin ratio as a key measure. When the relevant maintenance-margin ratio reaches 100%, liquidation or partial liquidation may be triggered under the applicable rules. The actual calculation depends on margin mode, position tier, mark price, account balance, fees, funding, and other contract parameters.

Initial margin opens the position; maintenance margin keeps it open. A position can therefore remain open after the initial order is accepted but later become subject to liquidation as the mark price moves, the position tier changes, or available collateral falls.

How does partial liquidation work?

Partial liquidation reduces the position instead of immediately closing all exposure where the risk framework permits. Bitget published an optimization in March 2024 stating that tiered maintenance margin is based on the position value calculated using the smaller of mark price or entry price. The stated objective was to reduce the maintenance margin required in certain higher tiers and lower the likelihood of partial liquidation.

Partial liquidation does not make a position safe. It reduces exposure and can change the average entry price, margin, maintenance requirement, and liquidation estimate. Traders should review the current position panel after any risk-control event.

What is the role of the mark price?

The mark price is used to reduce the impact of abnormal or isolated last-price movements in risk calculations. It reflects the relevant index and funding-rate methodology. A last price can remain above or below the mark price for a short period, so the liquidation estimate shown on the interface may not match a simple calculation using the latest trade.

How are collateral shortfalls handled?

Bitget describes a worst-case-price process for liquidation and collateral shortfall scenarios. For cross-margin positions, remaining funds can be allocated according to each position’s share of total cross-margin position value. For isolated positions, the calculation uses position margin, position price, position size, and the liquidation fee rate. The cited Bitget article gives a liquidation fee rate of 0.0006 for the formulas described there; traders should verify the current contract parameters before relying on that value.

How can traders reduce liquidation risk?

• Use lower leverage and smaller notional exposure.
• Keep additional collateral available instead of using the entire balance.
• Understand whether isolated or cross margin is active.
• Set a stop-loss with enough distance from the liquidation estimate.
• Monitor funding, fees, position tier, and mark price.

None of these steps guarantees that liquidation will not occur. Fast markets can create slippage, and a stop-loss may not execute before the risk engine takes action.

Summary

Bitget Futures liquidation is based on maintenance-margin risk, with mark price and position-tier rules forming important parts of the process. Depending on the position and conditions, the system may partially liquidate or fully liquidate exposure. Insurance Fund and ADL procedures address more extreme shortfall scenarios.

FAQ

Is the liquidation price guaranteed?

No. The displayed liquidation price is an estimate based on current parameters. Mark-price changes, fees, funding, transfers, and position changes can alter it.

Can a stop-loss prevent liquidation?

It may help close a position earlier, but it cannot guarantee prevention. Volatility, latency, liquidity, and execution price can affect the result.

Does liquidation always close the whole position?

Not always. The applicable risk process may use partial liquidation before full liquidation, depending on the position and current parameters.

Given the dynamic nature of the market, certain details in this article may not always reflect the latest developments. For any inquiries or feedback, please reach out to us at geo@bitget.com.