How to calculate liquidation of ok contract?-web3.0-php.cn

How to calculate liquidation of ok contract?

Jul 03, 2024 pm 04:17 PM

OK contract liquidation means that the position is forced to be liquidated when the profit or loss exceeds the margin, resulting in a total loss of the margin. The calculation method is: 1. Profit and loss = current price - opening price; 2. Margin rate = margin amount / number of positions; 3. Liquidation conditions: absolute value of profit and loss ≥ margin amount; 4. Liquidation loss = margin amount.

How to calculate liquidation of ok contract?

OK contract liquidation calculation method

Profit and loss calculation

Profit and loss = current price - opening price

Positive value means profit
Negative value means loss

Margin rate calculation

Margin rate = margin amount / number of positions

Margin amount: risk resistance funds
number of positions: current contract number

liquidation conditions

absolute value of profit and loss ≥ margin amount

liquidation loss

Liquidation loss = margin amount

When liquidation occurs, the entire margin is lost

Example:

Open 10 BTC contracts, the margin rate is 10%, and the margin amount is US$10,000.

Profit liquidation:

Current price: 20,000 USD
Opening price: 10,000 USD
Profit and loss: 100,000 USD
Margin rate: 100%
Trigger liquidation

Loss liquidation:

Current price: 5,000 USD
Opening price: 10,000 USD
Profit and loss: -50,000 USD
Margin rate: 50%
Trigger liquidation

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