Can I appeal a liquidation on Coinbase?

Coinbase automatically liquidates leveraged positions when margin falls below requirements—no appeals for standard cases, but technical errors may be reviewed with evidence.

Jul 24, 2025 at 04:42 am

Understanding Liquidation on Coinbase

When trading on Coinbase, particularly in advanced trading products like futures or margin trading, a liquidation occurs when your position is automatically closed due to insufficient margin. This typically happens when the market moves against your position and your equity falls below the maintenance margin requirement. Liquidation is not a discretionary action by Coinbase—it is a built-in risk management mechanism governed by the platform’s liquidation rules and the specific contract terms. Users often assume this is a mistake or a glitch, but it is usually the result of market volatility and leverage usage.

Does Coinbase Allow Appeals for Liquidations?

Coinbase does not provide a formal appeal process for liquidations that occur under standard trading conditions. If the liquidation was triggered automatically based on margin thresholds and market data, Coinbase will not reverse or refund the position. This is clearly outlined in their [User Agreement](https://www.coinbase.com/legal/user_agreement) and Terms of Service. The system is algorithmic—once the liquidation conditions are met, the trade executes without human intervention. Therefore, even if you believe the timing or price was unfavorable, there is no appeal mechanism for routine liquidations.

When Might Coinbase Review a Liquidation?

There are rare exceptions where Coinbase may investigate a liquidation event:

• System outages or technical errors that prevented you from closing your position manually
• Incorrect liquidation price feeds from third-party data providers
• Unauthorized access to your account leading to unexpected trades
• Glitches in the liquidation engine that trigger liquidations outside of defined parameters
  

  If you suspect one of these issues, you must provide concrete evidence—such as screenshots of your position status, timestamps of the liquidation, and proof of connectivity or system errors. Submit this information via Coinbase Support under the “Advanced Trade” or “Futures” category, depending on where the liquidation occurred.

  Step-by-Step: How to Report a Suspected Liquidation Error

  
  If you believe your liquidation was erroneous due to technical issues, follow these exact steps:
• Log into your Coinbase account and navigate to the Help Center
• Select “Contact Support” and choose “Advanced Trade” or “Futures” as the product
• Choose “Report a problem” and then “Liquidation issue”

• Upload a detailed explanation, including:

  • Timestamps (in UTC) of when the position was opened and liquidated
  • Screenshots of your position history and margin levels before liquidation
  • Any error messages or system behavior that seemed abnormal
  • If applicable, a link to third-party price data (e.g., CoinMarketCap, Binance) showing a discrepancy
• Do not delete or modify your trade history—Coinbase may audit your account activity
  

  This process does not guarantee a reversal, but it initiates a formal case review by Coinbase’s risk and compliance team.

  What Coinbase Support Will Not Accept as an Appeal

• Claims that you “didn’t understand the risks of leverage”
• Requests based solely on emotional distress or financial loss
• Allegations of unfair pricing without verifiable data
• Late submissions (more than 7 days after the liquidation event)
• Appeals for liquidations that occurred during known high-volatility events (e.g., major news, halving events)
  

  These are not valid grounds for appeal because they relate to user education or market behavior—not platform malfunction. Coinbase considers trading with leverage a sophisticated activity and expects users to monitor their positions actively.

  How to Prevent Future Liquidations

  
  To avoid liquidation in the future, implement these risk management practices:
• Set stop-loss orders to close positions before they reach liquidation levels
• Monitor your maintenance margin ratio in real-time using the Advanced Trade interface
• Avoid over-leveraging—use 2x–5x leverage instead of maximum allowed (often 25x or 50x)
• Enable liquidation price alerts in your notification settings
• Keep extra USDC or stablecoins in your margin wallet to absorb drawdowns
  

  These steps do not eliminate risk but significantly reduce the chance of automatic liquidation.

  Frequently Asked Questions

  Can I get my funds back if I was liquidated during a Coinbase outage?
  
  Yes, but only if Coinbase confirms the outage directly caused the liquidation. You must provide evidence (e.g., Coinbase status page showing downtime, your inability to place orders) and submit a support ticket within 7 days.

  Does Coinbase ever reverse liquidations for VIP or Pro users?
  
  No. Liquidation rules apply uniformly to all users regardless of account tier or trading volume. There is no special appeal process for high-volume traders.

  Why didn’t I get a margin call before liquidation?
  
  Coinbase does not issue margin calls in real-time. The platform displays your margin ratio continuously, and it’s your responsibility to monitor it. No margin call = no appeal.

  Can I liquidate someone else’s position by manipulating the market?
  
  No. Market manipulation is illegal and violates Coinbase’s terms. Attempting this may result in account suspension or legal action—not a liquidation appeal.