If your position is liquidated, it will be taken over by DueDEX Liquidation engine. And in case the position remains unsettled when the mark price reaches the bankruptcy price, the Auto Deleveraging system will automatically deleverage the positions owned by opposing traders according to the profit and leverage level.
The price where your position is closed is the bankruptcy price of the liquidated position.
The Insurance Fund is used to prevent Auto Deleveraging. DueDEX caps the percentage of Insurance Fund be used to a single liquidation position.
Once you are deleveraged, a notification will be sent to you. Your active orders will be canceled. You can re-enter the market later.
Priority Ranking Calculation
On DueDEX, your deleveraging priority is calculated by your profit and leverage. The more profitable and/or the higher leveraged positions are going to be deleveraged first.
The calculation is as below:
- Ranking = PNL Percentage * Effective Leverage (if PNL percentage > 0), or
- Ranking = PNL Percentage / Effective Leverage (if PNL percentage < 0)
- Effective Leverage = abs(Mark Value) / (Mark Value - Bankrupt Value)
- PNL percentage = (Mark Value - Avg Entry Value) / abs(Avg Entry Value)
- Mark Value = Position Value at Mark Price
- Bankrupt Value = Position Value at Bankruptcy Price
- Avg Entry Value = Position Value at Average Entry Price
The system rank positions from high to low according to the ranking, longs and short separately.