Cryptocurrency Q&A
What is the forced liquidation fee on OKX?
What is the forced liquidation fee on OKX?
DondaejiDelightfulCharmingSmileJoy
Wed Sep 04 2024
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6 answers
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I'm curious about the forced liquidation fee imposed by OKX, the popular cryptocurrency exchange. Could you please elaborate on what this fee entails? Is it a standard charge applied across all instances of forced liquidation, or does it vary based on certain factors? Additionally, are there any ways for traders to avoid or minimize this fee, such as maintaining a certain level of margin or adhering to specific trading strategies? Understanding the forced liquidation fee is crucial for managing risk and optimizing my trading experience on OKX, so I'd appreciate your insights on this matter.
6 answers
Elena
Fri Sep 06 2024
The forced liquidation fee is a crucial aspect of cryptocurrency trading, particularly in Leveraged or futures markets. It serves as a mechanism to protect the exchange and its users from excessive losses.
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Valentina
Fri Sep 06 2024
The calculation of this fee involves several factors, including the taker fee tier, multiplier, contract size, and number of contracts involved in the liquidation.
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Giulia
Fri Sep 06 2024
Specifically, the forced liquidation fee is determined by taking the minimum value between two calculations. The first calculation involves multiplying the taker fee tier, multiplier, contract size, and number of contracts.
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Filippo
Fri Sep 06 2024
The second calculation involves a flat percentage of 12.5% multiplied by the mark price, multiplier, contract size, and number of contracts. The lower of these two values is then used as the forced liquidation fee.
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DigitalLegend
Thu Sep 05 2024
The user's 24-hour withdrawal limit, on the other hand, is a safety measure implemented by exchanges to prevent unauthorized or excessive withdrawals.
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