Will you owe money after forced liquidation of leveraged contracts in the cryptocurrency circle?

Cryptocurrency contracts are essentially futures

It’s just that most exchanges have already deducted your margin fees in advance

So you won’t owe money if your cryptocurrency contract is liquidated

The logic is very simple. For example, if you have a full position of 1,000 US dollars and a 20x leverage, theoretically a 5% drop is the liquidation point

But the exchange has taken the margin fees in advance, so generally a drop of about 3.5% will cause liquidation

This is completely different from traditional futures, which are close to liquidation

The securities company will call you to notify you to replenish the margin

You will still owe the securities company money for subsequent liquidation