Forced liquidated

ZT provides 100 times high leverage on contracts. To keep these positions open, traders are required to hold a percentage of the value of the position on the exchange, known as the Maintenance Margin percentage. Minimum Maintenance Margin Requirements can be reviewed on the Risk Limits Page.

If you cannot fulfill your maintenance requirement, you will be liquidated and your half maintenance margin will be lost, the remaining half will go to contract trading fund. This ratio would decrease as the fund value goes up. 

You can review your liquidation price per position via the Open Positions Tab and adjust by adding additional margin via the Leverage Slider or via the Risk Limits tab.

Minimisation of Liquidations

ZT uses Fair Price Marking for the purpose of avoiding liquidation due to illiquid markets or manipulation.

Risk Limits are also imposed that require higher margin levels for larger position sizes. This gives the ZT liquidation system more usable margin to effectively close large positions that would otherwise be difficult to safely close. If it is safe to do, larger positions are incrementally liquidated.

If a liquidation is triggered, ZT will cancel any open orders on the current contract in an attempt to free up margin and maintain the position. Orders on other contracts will still remain open.

Liquidation Process

ZT employs a partial liquidation process involving automatic reduction of maintenance margin in an attempt to avoid a full liquidation of a trader’s position.

Users on the Lowest Risk Limit tiers

1. ZTcancels any open orders in the contract.
2. If this does not satisfy the maintenance margin requirement then the position will be liquidated by the liquidation engine.

• Liquidation engine would not liquidate at broken prices but with the suitable price.
• When the certain part of user’s funds reach the maintenance margin requirement for the remaining positions, the liquidation engine will stop. This would prevent the most position be liquidated.
• Cancelling any open orders and then attempting to bring a user down to a Risk Limit associated with their current position.
• If the position being taken over is a full position: Except for the transfer of funds to the contract account, the investor cannot do anything with the same contract as the margin currency of the position.

1. ZTwill refund the remaining maintenance margin for the user. 

System Gains and Losses

If ZT is unable to liquidate the position at the bankruptcy price, this will then lead to an Forced-Deleveraging event.

The English manuscripts are all translations of Chinese manuscripts. All of them are subject to the Chinese version. Thank you.