Binance Margin provides users with the flexibility to choose different leverage multipliers based on their risk tolerance and trading strategies. Depending on the Margin product, leverage can range from 3x up to a maximum of 10x.
How are liquidations triggered on Binance Margin?
When the liquidation threshold is reached, a user’s margin position will be liquidated, and their collateral will be sold to repay any liabilities and interest owed.Each margin mode and leverage multipliers has different liquidation margin levels:
| Margin Mode | Leverage Multiplier | Liquidation Thresholds |
| Cross Margin Classic Mode | 3x | Margin Level < 1.1 |
| Cross Margin Classic Mode | 5x | Margin Level < 1.1 |
| Isolated Margin Mode | 3x | Margin Level < 1.18 |
| Isolated Margin Mode | 5x | Margin Level < 1.15 |
| Isolated Margin Mode | 10x | Margin Level < 1.05 |
| 10x | Margin Level < 1.0 |
How do liquidations work in Binance Margin?
There are two types of forced liquidation: regular liquidation and takeover liquidation. The system determines the liquidation method based on the market liquidity of the traded assets.
Regular liquidation
- Takes place within the user's margin account.
- Collateral assets are sold to offset liabilities and accumulated interest.
- During the liquidation process, the account is locked, preventing the user from transferring funds, borrowing or repaying assets, and trading.
Takeover liquidation
- Occurs when the traded assets lack sufficient liquidity during the given period.
- Upon triggering a takeover liquidation, all collateral assets and liabilities in the user's margin account are transferred to the Binance liquidation account.
- The liquidation engine consolidates and sells the collateral assets and manages the liability and interest repayments.
- During periods of high market volatility, takeover liquidation cases may take longer to complete due to multiple users’ collateral assets waiting to be sold.
| Regular Liquidation | Takeover Liquidation | |
| Visibility of Liquidation Orders | Yes | No |
| Visibility of Position Snapshots | Yes | No |
| Locked Account | Yes | No |
| Liquidation Fees | Yes | Yes |
| Selling of Collateral and Repayment of Debt | Complete in the user’s Margin Account | Complete in the Binance Liquidation Account |
During extreme market volatility or when the collateral ratio of a user's assets is low, both regular liquidation and takeover liquidation may occur. The liquidation engine will partially trade the collateral assets to repay some liabilities. If market liquidity worsens during this process, it transitions into a takeover liquidation. This transition helps minimize the impact on the market price volatility.
Examples
Scenario 1
User A has a net equity of 2 BTC and a 400,000 USDC loan in their Cross Margin account. They buy 8 BTC at 50,000 USDC, with the Margin Level (ML) at 1.25. When BTC price drops to 44,000 USDC, ML drops to 1.1 and triggers a forced liquidation. 9.09090909 BTC is sold and returns the 400,000 USDC liability (assuming no interest) and pays a liquidation fee of 0.18181818 BTC (equivalent 8,000 USDC value). After the liquidation, User A has 0.72727273 BTC remaining in their Cross Margin account.
| Period | Collateral | Collateral Value (USDC) | Debt (USDC) | Margin Level | Net Equity Value (USDC) | BTC Price (USDC) |
| #1 Initial | 2 BTC | 100,000 | 0 | 999 | 100,000 | 50,000 |
| #2 Position | 10 BTC | 500,000 | 400,000 | 1.25 | 100,000 | 50,000 |
| #3 Liquidation | 440,000 USDC | 440,000 | 400,000 | 1.1 | 40,000 | 44,000 |
| #4 Repay | 0.90909091 BTC | 40,000 | 0 | 999 | 40,000 | - |
| #5 End(Liquidation Fee Deduction) | 0.72727273 BTC | 32,000 | 0 | 999 | 32,000 | - |
User A can see the liquidation history and liquidation orders here.
Scenario 2
User B has a net equity of 100,000 SUPER (assuming no collateral haircuts) and a 400,000 USDC loan in their Cross Margin account. They buy SUPER at 1 USDC, with the ML at 1.25. When SUPER price falls to 0.88 USDC, the ML falls to 1.1 and triggers a forced liquidation.
Instead of immediately selling 500,000 SUPER, the liquidation engine determines SUPER to have poor liquidity and triggers a takeover liquidation to prevent introducing further volatility for SUPER. All collateral assets (500,000 SUPER) and liabilities (400,000 USDC) will be transferred from User B’s account to a unified takeover account, and SUPER will be gradually sold based on market liquidity to repay the USDC liabilities. Assuming an average SUPER trading price of 0.87 USDC in the unified takeover account, the remaining 27,000 USDC will be returned to User B’s Cross Margin account after repaying a 400,000 USDC debt and deducting a 8,000 USDC liquidation fee.
| Period | Collateral | Collateral Value (USDC) | Debt (USDC) | Margin Level | Net Equity Value (USDC) | SUPER Price (USDC) |
| #1 Initial | 100,000 SUPER | 100,000 | 0 | 999 | 100,000 | 1 |
| #2 Position | 500,000 SUPER | 500,000 | 400,000 | 1.25 | 100,000 | 1 |
| #3 Liquidation | 500,000 SUPER | 440,000 | 400,000 | 1.1 | 40,000 | 0.88 |
| #4 Takeover | 435,000 USDC | 435,000 | 400,000 | 1.0875 | 35,000 | 0.87 |
| #5 Repay | 35,000 USDC | 35,000 | 0 | 999 | 35,000 | - |
| #6 Return | 27,000 USDC | 27,000 | 0 | 999 | 27,000 | - |
User B can see the liquidation history and takeover detail information here .
Scenario 3
User C has a net equity of 1 BTC and 50,000 SUPER (assuming no collateral haircuts), and a 400,000 USDC loan in their Cross Margin account. They buy SUPER at 1 USDC, with the ML at 1.25 (assuming BTC price is 50,000 USDC and remains unchanged).
When SUPER falls to 0.866666667 USDC, the ML falls to 1.1 and triggers a forced liquidation. The liquidation engine sells 1 BTC for 50,000 USDC. Instead of immediately selling 500,000 SUPER, it determines SUPER to have poor liquidity and opts for a takeover liquidation. All of User C’s collateral assets (450,000 SUPER and 50,000 USDC) and liabilities (400,000 USDC) are transferred to a unified takeover account. Assuming an average SUPER trading price of 0.86 USDC in the unified takeover account, the remaining 29,000 USDC will be returned to User C's Cross Margin account after repaying a 400,000 USDC debt and deducting a 8,000 USDC liquidation fee.
| Period | Collateral | Collateral Value (USDC) | Debt (USDC) | Margin Level | Net Equity Value (USDC) | Price (USDC) |
| #1 Initial | 1 BTC and 50,000 SUPER | 100,000 | 0 | 999 | 100,000 |
|
| #2 Position | 1 BTC and 450,000 SUPER | 500,000 | 400,000 | 1.25 | 100,000 |
|
| #3 Liquidation | 1 BTC and 450,000 SUPER | 440,000 | 400,000 | 1.1 | 40,000 |
|
| #4 Repay 1 | 450,000 SUPER | 390,000 | 350,000 | 1.11428571 | 40,000 | - |
| #5 Takeover | 450,000 SUPER | 387,000 | 350,000 | 1.10571429 | 35,000 |
|
| #6 Repay 2 | 37,000 USDC | 37,000 | 0 | 999 | 37,000 | - |
| #7 Return | 29,000 USDC | 29,000 | 0 | 999 | 29,000 | - |
User C can see the liquidation history, liquidation orders and takeover detail information here.
What are the liquidation fees?
According to Margin Service Terms of Use, a certain percentage of the liquidation fee will be charged both on regular liquidation and takeover liquidation:
| Margin Mode | Rate | Fee Base |
| Cross Margin Classic Mode | 2% | Liquidated Assets |
| Isolated Margin Mode | (Liquidation Risk Ratio - 1) * 8% | Liquidated Assets |
Cross Margin Pro Mode | 2% | Liquidated Assets |
Based on the rates above, if the total amount of liquidated assets is 400,000 USDC, the liquidation fee will be 8,000 USDC.
The liquidation fee will be deducted from the user's remaining assets.
Important Note: For full terms and conditions of Liquidated Assets, please refer to Margin Service Terms of Use.
How to avoid forced liquidations?
In margin trading, forced liquidations can lead to significant losses. To avoid this, we recommend following risk management strategies:
1. Monitor Margin Levels and Collateral Values
- Regularly check the risk ratio of margin positions. For more details, please refer to Binance Margin Level and Risk Control.
- Ensure collateral is sufficient to maintain positions.
- Make necessary risk control adjustments in advance.
2. Take Note of Margin Calls
- Pay attention to margin call notifications via emails, app push notifications or in-app messages.
- Use these alerts to make timely decisions or adjust strategies to prevent forced liquidations.
| Margin Mode | Leverage Multiplier | Margin Call Ratio |
| Cross Margin Classic Mode | 3x | 1.3 |
| Cross Margin Classic Mode | 5x | 1.16 |
| Isolated Margin Mode | 3x | 1.22 |
| Isolated Margin Mode | 5x | 1.19 |
| Isolated Margin Mode | 10x | 1.1 |
| Cross Margin Pro Mode | 10x | 1.5 |
3. Use the Auto Top-Up function
Users can also use the Auto Top-Up function to reduce the risk of forced liquidations. After enabling the function, the system will automatically transfer available assets from their Spot Wallet to their Margin Wallet.
Disclaimer: Please note that due to extreme market movements, the margin level might hit the liquidation ratio immediately after touching the margin call ratio. Your positions might get liquidated before Auto Top-up can be performed in this case. You are strongly advised to monitor the margin level closely to avoid losses. Binance shall not be liable for any loss incurred.