Forced liquidation on HedgerX futures
HedgerX closes a futures position when the mark price reaches the liquidation price. Higher leverage puts that price closer to your entry. Margin tiers, the insurance fund and auto-deleveraging apply when the market moves fast.
HedgerX's own rule of thumb: with 10x leverage a 10% move against you liquidates the position, and with 100x a 1% move does. This page is not financial advice.
How it triggers
Liquidation happens when your margin balance falls to the maintenance margin, and the trigger is the mark price reaching the liquidation price. The mark price blends the index price, an average across several major exchanges, with the last price. For BTCUSDT, HedgerX’s index uses Binance, Bybit and OKX, weighted at about 43%, 36% and 21%.
In isolated margin mode the liquidation condition is that position margin plus floating PnL is no greater than maintenance margin. In cross margin mode all your available margin supports the position, and the funding fees you pay or receive move the liquidation price.
What happens next
HedgerX’s liquidation engine takes the position over at the bankruptcy price. If the engine sells it at a better price, the remaining margin goes to the insurance fund. If it cannot, the insurance fund covers the gap. When the fund is not enough, auto-deleveraging closes the positions of profitable counterparties at the bankruptcy price, ranked by profit percentage times effective leverage.
Risk tiers on BTCUSDT
Maintenance margin depends on position size, not on the leverage you chose. Larger positions fall into higher tiers with a higher maintenance rate and a lower maximum leverage.
| Tier | Maximum leverage | Position size (contracts) | Maintenance margin rate |
|---|---|---|---|
| 1 | 100x | 91,000 | 0.5% |
| 2 | 66x | 1,291,000 | 1% |
| 3 | 50x | 2,491,000 | 1.5% |
| 4 | 40x | 3,691,000 | 2% |
| 5 | 33x | 4,891,000 | 2.5% |
| 6 | 28x | 6,091,000 | 3% |
| 7 | 25x | 7,291,000 | 3.5% |
| 8 | 22x | 8,491,000 | 4% |
| 9 | 20x | 9,691,000 | 4.5% |
| 10 | 18x | 10,891,000 | 5% |
| 11 | 16x | 12,091,000 | 5.5% |
One contract is 0.0001 BTC. HedgerX may change maximum leverage, tier limits and maintenance rates in abnormal market conditions.
Why a stop-loss can fail
- The stop price sits too close to the liquidation price.
- The market moves so fast that a market order fills at a different price, or only in part.
- There are no closeable positions, the contract is not trading, or the system has an issue.
HedgerX’s stop-loss orders execute at the market price, so the fill can differ from the trigger price.
Frequently asked questions
Which price triggers liquidation?
The mark price, not the last traded price. HedgerX uses it to avoid liquidations caused by thin liquidity or manipulation.
Can I be liquidated before my stop-loss triggers?
Yes. If the stop-loss price is too close to the liquidation price, the liquidation price can be reached first.
What is the default leverage?
If you do not set leverage before opening a position, HedgerX defaults to 20x.
How do I reduce the risk?
Lower the leverage, add margin by hand, set a stop-loss, or close the position before the margin balance reaches the maintenance level.
Open a HedgerX account
If you decide to trade futures, register, keep leverage low and place your stop-loss well away from the liquidation price.
Registration takes a few minutes. HedgerX states that its services are not available in China, Turkey, Kazakhstan and Indonesia. Futures trading can liquidate your position. This page is not financial advice.
Open a HedgerX accountThis is a referral link. We may earn a commission if you register.