How Does MEXC Contract Liquidation Warning Work?

Core Mechanism of Liquidation Warning

1. The system continuously monitors the margin ratio of each open position in real time, calculating it as (Available Margin / Position Margin) × 100%.

2. When the margin ratio drops below the maintenance margin threshold—such as 1.5% for BTC/USDT perpetual contracts—the warning module activates immediately.

3. A visual alert appears in the user’s trading interface with a red flashing banner labeled “Liquidation Risk Detected”.

4. Simultaneously, a push notification is sent via the MEXC mobile app and email, specifying the affected contract, current margin ratio, and estimated liquidation price.

5. The warning persists until the margin ratio rises above 120% of the maintenance level or the position is closed.

Multi-Channel Alert Delivery

1. In-app alerts include dynamic tooltips hovering over the position row, displaying real-time margin decay rate per minute.

2. SMS notifications are triggered for users who have enabled two-factor authentication via phone number and hold positions exceeding 50x leverage.

3. WebSocket-based real-time updates ensure latency under 300ms between server-side margin calculation and client-side display.

4. For accounts with multiple active contracts, warnings are prioritized by proximity to liquidation—positions within 0.8% of the liquidation price appear at the top of the alert stack.

5. No sound alerts are issued by default; users must manually enable audio cues in the “Risk Management” settings panel.

Insurance Fund Integration During Warning Phase

1. Once a warning is active, the system pre-calculates whether the Insurance Fund could absorb potential losses if liquidation proceeds—this value is shown alongside the warning as “Insurance Coverage Estimate”.

2. If coverage exceeds 95%, the interface displays a green shield icon next to the warning banner, indicating high probability of orderly settlement without clawback.

3. The displayed insurance balance reflects only funds held in the BTC/USDT perpetual pool—not cross-pool or aggregated totals.

4. Users cannot withdraw from or transfer into the Insurance Fund during an active warning state; all fund movements are frozen for 15 minutes post-warning activation.

5. Historical insurance fund utilization data for the specific contract pair is accessible via a dedicated “Fund Transparency” tab beneath the warning banner.

Margin Call Execution Protocol

1. At 75% of the maintenance margin level, the system initiates a margin call—displaying a modal window requiring manual confirmation to add funds or reduce position size.

2. Auto-margin top-up is disabled by default; users must explicitly toggle “Enable Auto-Fund Transfer” in account security settings.

3. If no action is taken within 60 seconds after the margin call, the system begins partial liquidation—closing 25% of the position to restore margin health.

4. Each partial liquidation event triggers a new timestamped log entry visible in the “Risk Activity History” section.

5. Full liquidation occurs only when margin ratio hits zero or negative—no forced closure happens before that point unless the user manually triggers “Close All Positions”.

Frequently Asked Questions

Q1: Does the liquidation warning trigger automatically on weekends or holidays?Yes. The warning system operates 24/7 regardless of market session status or calendar date.

Q2: Can I disable liquidation warnings entirely?No. Warnings are mandatory for all leveraged contract accounts under MEXC’s risk compliance framework.

Q3: Why does my warning show a different liquidation price than the one calculated manually?The displayed price uses mark price—not last traded price—and includes funding rate adjustments and depth-weighted index inputs.

Q4: Is there a fee associated with receiving a liquidation warning?No. Alerts and related infrastructure usage incur zero cost to the user.