How Does Liquidation Work Under the Binance Portfolio Margin Pro Account?

When does liquidation occur?

Liquidation occurs when an account’s Unified Maintenance Margin ratio (uniMMR) falls below 105%. In such cases, the liquidation system will take over the account and the user will not be able to perform any transactions during the liquidation process.

Once liquidation is triggered, it won't stop until it's completed. Transferring assets into the Margin, USDⓈ-M Futures, or COIN-M Futures Accounts after liquidation has begun will not stop nor reverse the process. 

To learn more, please refer to Binance Portfolio Margin Pro Maintenance Margin Ratio Calculation.

Understanding liquidation risks and the importance of margin checks

Since there is no margin check at the order level, placing a large order may cause the uniMMR to drop below 105% when the order is executed, increasing the risk of being liquidated. Therefore, you are recommended to perform margin checks before placing an order. You can also set an adequate risk control framework to mitigate liquidation risks.

Is there a liquidation fee?

The Portfolio Margin Pro Program will charge a liquidation fee when liquidation occurs. When your Portfolio Margin positions are liquidated (including Futures positions and margin loans), a certain percentage of the Insurance Clearance fee will be collected and contributed to Insurance Fund reserves. This is marked as “Insurance Clearance” under your [Transaction History].

Please refer to the respective articles for more details on Futures and Margin positions' liquidation clearance fees.

Liquidation process of USDⓈ-M and COIN-M positions

All liquidation orders are executed as Immediate or Cancel (IOC) orders during the liquidation process. IOC orders aim to fill as much of the liquidated position as possible. If there are any remaining positions after the partial execution of the order, they will be handled in one of two ways:

• Assigned to the Insurance Fund: Some or all of the remaining positions may be assigned to the Insurance Fund. This helps to mitigate the impact of the liquidation event and contributes to maintaining the overall stability of the platform.
• Assigned to Auto-Deleveraging (ADL): For positions exceeding the maximum amount of Insurance Fund coverage, ADL will be triggered.

Liquidation process of Margin positions

The liquidation process on the Margin side will start once the liquidation process on the Futures side is done, for more details please refer to How Does Risk-Based Liquidation Adjustment Work.

Automated negative balance clearance via pmLoan

If there is still remaining debt after the above liquidation processes are done, it will be converted into a pmLoan in USDT.

Once liquidation occurs, please check whether your account has any pmLoan. You can repay it through the SAPI API endpoint or the Cross Margin Account from the website or the App.

Please note:

• You must repay the pmLoan first to restore the trading functions.
• The pmLoan is currently interest-free.
• When you repay the pmLoan, the system will check whether you have a sufficient USDT balance in the Spot Account to cover the loan amount before transferring USDT from your Spot Account to your Cross Margin Account.
• pmLoan data and repayment can be requested via the following APIs:
  • GET /sapi/v1/portfolio/pmLoan
  • POST /sapi/v1/portfolio/repay
  • For more details, please refer to the Portfolio Margin Pro API Interface section.

Margin call notifications

Binance will notify users by email and inmail when their uniMMR falls below the following levels:

• A  A margin call will be sent when the uniMMR ≤ 150%;
• Your account will be automatically changed to reduce-only mode (opening new positions and margin loans will be suspended) when the uniMMR ≤ 120%;
• You will receive a liquidation call when the uniMMR ≤ 105%.

API error codes during liquidation

When your account is in reduce-only or liquidation mode, the following order entry error codes will be in effect: