In cryptocurrency, liquidation, margin call, and settlement are terms related to derivatives trading, each with different meanings and operations.

Liquidation refers to the forced closing action taken by the exchange or platform when a trader's margin account is insufficient to meet the maintenance margin requirement. The exchange will automatically close the trader's positions at market prices to protect the interests of the exchange and other traders. Liquidation typically occurs during periods of extreme market volatility, insufficient margin, or when risk control targets are triggered.

Margin call refers to the situation when a trader's position suffers significant losses, causing their margin account balance to drop to zero or a negative number. Margin calls usually result from extreme market volatility or the trader's failure to timely add margin. A margin call can lead to the forced closing of the trader's positions and may result in additional losses.

Settlement refers to the actual delivery of assets between the trading parties according to the contract terms at the expiration of the contract. In cryptocurrency derivatives trading, settlement can be either physical settlement (i.e., actual delivery of cryptocurrency) or cash settlement (i.e., monetary settlement based on contract value). The method of settlement depends on the type of contract and the regulations of the exchange.

In summary:

Liquidation is the forced closing action taken by the exchange to meet the maintenance margin requirement. Margin call refers to the situation where the trader's margin account balance drops to zero or a negative number. Settlement is the delivery of actual assets or cash according to the contract terms at the expiration of the contract.