Who bears losses that exceed the margin?
The ADL indicator next to a position shows its ranking. The more bars that are lit, the more likely the position is to be prioritized for reduction when ADL occurs. The bankruptcy price is the price at which the position’s losses exactly equal the entire margin; liquidation is usually triggered before the price reaches the bankruptcy price.
Binance’s insurance fund mainly comes from liquidation fees collected from liquidations and profits made after closing bankrupt positions. It builds up during stable markets and is used to cover losses beyond the collateral during extreme market conditions.
Coin in the example: $BTC , current price 80666.93, 24h +0.29%.
#BTC
The ADL indicator next to a position shows its ranking. The more bars that are lit, the more likely the position is to be prioritized for reduction when ADL occurs. The bankruptcy price is the price at which the position’s losses exactly equal the entire margin; liquidation is usually triggered before the price reaches the bankruptcy price.
Binance’s insurance fund mainly comes from liquidation fees collected from liquidations and profits made after closing bankrupt positions. It builds up during stable markets and is used to cover losses beyond the collateral during extreme market conditions.
Coin in the example: $BTC , current price 80666.93, 24h +0.29%.
#BTC