This guideline applies to the forced liquidation/position-reduction rules for BTCC Standard Perpetual Futures. If you are using Futures Pro, please refer to the Pro documentation.
 

1) Trigger Conditions for Forced Liquidation

When the account balance falls below the forced-liquidation margin due to losses, the system enters risk handling and triggers forced liquidation.
Forced-liquidation margin = Used margin × 40% (subject to the latest notice in the Announcements Center).
Account mode: futures support Cross Margin only.
Forced-liquidation order for multiple positions: When holding multiple positions, the system will liquidate the position with the largest loss first, until the account funds are sufficient to maintain the required margin level.
Risk-limit tiers: futures adopt risk-limit control; the larger the position, the lower the maximum selectable lot size. The specific limits follow the product page.
 

2) Price Determination System

For futures, forced-liquidation and PnL determination follow the platform’s two-way quotes (not the “Average Price”). The platform uses both best bid/ask quotes:
Long positions (buy): monitored and settled against the sell-out price = best bid (Bid).
Short positions (sell): monitored and settled against the buy-in price = best ask (Ask).
The candlestick chart defaults to the mid price and is for reference only; actual execution and risk-control determination follow the prevailing two-way quotes.
 

3) Risk-Handling Flow and Fees

Sequence: Cancel orders (pre-processing) → Forced liquidation.
Note: If multiple positions are held, liquidation proceeds in descending order of loss.
Forced-liquidation fee (credited to the insurance fund; marked as “Liquidation fee” in the transaction record):
USDT-margined futures: Forced liquidation fee = Liquidation price × Liquidation quantity × Liquidation fee rate
Coin-margined (inverse) futures: Forced liquidation fee = Liquidation quantity × Liquidation fee rate
If liquidation occurs and the forced-liquidation fee has been charged, no additional closing fee will be charged.
 

4) Triggering/Calculation Essentials (Futures)

Forced-liquidation trigger rule: determined by comparing account balance with the forced-liquidation margin (used margin × 40%).
Price spread & charts: The K-line shows the mid price; the monitoring benchmark is the best bid/ask two-way quotes, so it is possible that “the chart mid price hasn’t touched, yet the monitoring price has already triggered.”
Futures do not use the MMR (maintenance margin rate) concept and do not use “Average Price” as the basis for forced-liquidation or PnL determination.
 

5) Bankruptcy Price

Liquidation price: the threshold level on the platform’s two-way quotes when the forced-liquidation trigger conditions are met.
Order-placement logic: considering market depth, basis, and two-way quotes to set a bankruptcy order price with the goals of executing quickly, maximizing liquidation remainder, and reducing market impact.
 

6) Risk Reserve Fund and “No Socialized Losses”

Use: to cover negative-equity (bankruptcy) losses and approved fault compensation; BTCC bears 100% of the shortfall.
Funding sources: including but not limited to forced-liquidation fees, with the income recorded into the insurance fund.
Disclosure: A page discloses the available balance and historical inflows/outflows (subject to the actual disclosure standard).
 

7) FAQs

Q1: Why did I get liquidated before the actual market price on the chart reached the displayed “liquidation price”?
A: Futures liquidation does not reference an “Average Price”; it references the platform’s two-way quotes: longs are monitored against the sell-out price = best bid (Bid), shorts against the buy-in price = best ask (Ask). The K-line by default shows the mid price, which differs from the bid/ask quotes, so “the chart level hasn’t touched, but the monitoring price has triggered” can occur.
 

Q2: How is the forced-liquidation fee calculated? Is it a fixed 1% or 1.2%?
A: It is calculated by the forced-liquidation fee rate (not your account’s taker fee rate).
USDT-margined: Forced liquidation fee = Liquidation price × Liquidation quantity × Liquidation fee rate
Coin-margined: Forced liquidation fee = Liquidation quantity × Liquidation fee rate
When liquidation occurs, only the forced-liquidation fee is charged—no additional closing fee. The latest fee rate is subject to official announcements.
 

Q3: Is there “socialized loss/clawback”?
A: No. BTCC does not socialize losses. After liquidation, if negative equity (“bankruptcy”) arises, the BTCC Risk Reserve Fund bears the shortfall; users will not be asked to repay, nor will profits be clawed back from other users.