Why are liquidations based on the mark price? Many people can't explain it clearly!
The mark price is the reference price exchanges use to calculate unrealized P&L and determine liquidations.
Using the latest price directly to determine liquidations could trigger a cascade of unjustified liquidations due to sudden, abnormal price movements in a market.
Don't trade futures with borrowed money—losses are often greater than expected.
$BTC 83007.23（+0.18%）
#BTC
The mark price is the reference price exchanges use to calculate unrealized P&L and determine liquidations.
Using the latest price directly to determine liquidations could trigger a cascade of unjustified liquidations due to sudden, abnormal price movements in a market.
Don't trade futures with borrowed money—losses are often greater than expected.
$BTC 83007.23（+0.18%）
#BTC