What Is the Liquidation Service Fee
When a forced liquidation is triggered in your Margin account, CoinEx will charge a Liquidation Service Fee at a fixed rate based on your [Principal To-Be-Repaid + Interest Unpaid].
The fee will be injected into the Insurance Fund to cover losses from bankrupt positions during margin trading.
Liquidation Service Fee Details
1. Calculation
(1) Liquidation Service Fee (Base Coin) = (To-Be-Repaid Base Coin + Unpaid Interest on Base Coin) × Liquidation Service Fee%
(2) Liquidation Service Fee (Quote Coin) = (To-Be-Repaid Quote Coin + Unpaid Interest on Quote Coin) × Liquidation Service Fee%
2. Fee notes
(1) The current Liquidation Service Fee ratio is 2%. CoinEx will adjust this ratio according to market conditions, and further announcements will be made accordingly.
(2) The Liquidation Service Fee is charged only once after the liquidation.
3. Fee collection
(1) If the remaining assets after liquidation (Base Coin + Quote Coin) ≥ Total Liquidation Service Fee, the full fee will be charged.
(2) If the remaining assets after liquidation (Base Coin + Quote Coin) < Total Liquidation Service Fee, the remaining assets will be fully charged as the Liquidation Service Fee.
(3) If no asset remains or the account goes bankrupt after liquidation, no Liquidation Service Fee will be charged.
Risk Reminder
1. Margin trading amplifies potential returns through borrowed funds, but it can also expose you to amplified losses if the market moves against your expectations. Margin trading carries risks. Traders should avoid opening positions with high leverage to prevent forced liquidation or bankruptcy during extreme market conditions.
2. Please use leverage prudently, manage your positions effectively, and set appropriate take-profit and stop-loss strategies to control potential risks.