How does liquidation work on BitMEX and what happens to my funds?

3 answers

• Sujatha A.Mar 05, 2022 · 3 years ago
  When you trade on BitMEX with leverage, there is a risk of getting liquidated if the price moves against your position. Liquidation occurs when the value of your position falls below a certain threshold, known as the liquidation price. When this happens, BitMEX will automatically close your position to prevent further losses. If you get liquidated, your funds will be used to cover the losses incurred. BitMEX will use the remaining funds in your account to repay the lender of the funds you borrowed for leverage. If there are any funds left after repaying the lender, they will be returned to your account. However, it's important to note that in volatile market conditions, it is possible for the liquidation price to be reached quickly, resulting in a total loss of your funds.
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• Avula YashwanthApr 15, 2021 · 4 years ago
  Liquidation on BitMEX is a mechanism designed to protect both traders and the exchange. When a trader's position is liquidated, it helps to ensure that the losses are covered and the lender is repaid. This helps to maintain the overall stability of the platform. While liquidation may seem like a harsh outcome, it is an essential part of trading with leverage and helps to prevent excessive risk-taking.
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• Lodberg WolffApr 28, 2025 · 2 months ago
  At BYDFi, we understand the importance of risk management and have implemented measures to help traders avoid liquidation. Our platform offers advanced risk management tools, such as stop-loss orders and margin call notifications, to help traders monitor their positions and prevent liquidation. We also provide educational resources and support to help traders make informed decisions and manage their risk effectively.
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