In cryptocurrencies, liquidation, margin call, and settlement are terms related to derivatives trading, each differing in meaning and operation.

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

Margin call occurs when a trader's position suffers significant losses, causing their margin account balance to drop to zero or negative. Margin calls are usually due to extreme market fluctuations or the trader's failure to provide additional margin in a timely manner. A margin call can lead to the forced closure of the trader's positions and may incur additional losses.

Settlement refers to the actual delivery of assets by both parties according to the contract terms upon expiration. In cryptocurrency derivatives trading, settlement can be either physical delivery (i.e., the actual delivery of cryptocurrency) or cash settlement (i.e., settlement of funds according to the contract value). The method of settlement depends on the type of contract and the exchange's regulations.

In summary:

Liquidation is the forced closure of positions taken by the exchange to meet maintenance margin requirements. A margin call refers to the situation where a trader's margin account balance drops to zero or negative. Settlement is the actual delivery of assets or cash according to the contract terms upon expiration.