Liquidations
For Pro mode (orderbook perpetual contracts)
Last updated
For Pro mode (orderbook perpetual contracts)
Last updated
In , liquidations are designed to protect both traders and the platform during periods of high volatility. Aster uses both the last price and the to manage liquidation processes effectively:
Last price: This is the most recent transaction price of a contract and is used to calculate realized profit and loss (PnL).
Mark price: Calculated based on a combination of funding data and a basket of prices from multiple spot exchanges, the mark price is used to determine unrealized PnL and trigger liquidations.
Risk and leverage are adjusted based on exposure; larger positions require higher margin and offer lower leverage.
A forced liquidation is triggered when:
Margin = Initial margin + Realized PnL + Unrealized PnL < Maintenance margin
To avoid liquidation (i.e., when the risk ratio hits 100%), it's recommended to maintain a margin ratio below 80% by adding sufficient margin or reducing the position size.
Forced liquidation occurs when the mark price reaches the liquidation price. Monitoring both the mark price and your liquidation price is crucial to prevent unwanted liquidations.
In cross margin mode with hedge trading, both long and short positions of the same contract share the same liquidation price. In isolated margin mode, long and short positions have different liquidation prices based on the margin allocated to each.
A built-in future calculator to compute liquidation prices is coming soon.
When your margin falls below the maintenance requirement, the system initiates forced liquidation to limit further losses and protect the platform.
All open orders on your account are immediately canceled.
If your margin is sufficient after this step—accounting for realized losses and liquidation fees—liquidation stops.
If not, your remaining position is closed at the bankruptcy price, and the position is handed over to the insurance fund. Your account is then marked as bankrupt.
If your wallet balance becomes negative at this point, the insurance fund covers the loss and pays any outstanding fees. Any remaining assets (if applicable) are also allocated to the insurance fund.
Additional notes:
Different liquidation protocols may apply depending on your position’s size and risk level, helping to minimize the chance of full liquidation.
It’s advisable to close positions manually before approaching the maintenance margin threshold to avoid forced liquidation fees.
Smaller positions are generally more likely to be fully liquidated, as they have less margin buffer and may not qualify for partial liquidation. Larger positions benefit from margin tiering, which allows for more gradual risk reduction.
If your account ends up with a negative balance after liquidation, Aster may use funds from the insurance fund to cover the loss — but only under specific conditions.
To qualify for automatic settlement, all of the following must apply:
The negative balance is in a USDT perpetuals account.
The account has no open positions (cross or isolated margin).
The negative balance is no greater than 5,000 USDT.
No funds have been transferred into the account after liquidation to offset the loss.
When your position is liquidated, a portion of the liquidation fee is allocated to the insurance fund. This appears in your transaction history as an “Insurance Clearance Fee”.
You can find more details on fee tiers in the Trading Rules page.
Additional notes:
Bankruptcy prices may fall outside the contract’s current market range.
Due to latency or syncing issues, some numerical values may update without notice.
A single large is submitted to reduce your position size. The system attempts to fill as much as possible and cancel the rest.
If you meet these conditions, the settlement will be handled automatically. If not, please contact us via for further assistance.