Bankruptcy Price is a price level that indicates you have lost all your initial margin.
Upon liquidation, the liquidated position will be closed at the Bankruptcy Price, and this means that you have lost all your initial margin. If the liquidated position has its final liquidation price better than the bankruptcy price, the excess margin will be contributed to the Insurance Fund. Vice versa, if the liquidated position has its final liquidation price worse than the bankruptcy price, the Insurance fund will cover the loss gap.
Bankruptcy Price
Margin type: Isolated Margin
For Buy/Long:
Bankruptcy Price= Entry Price × (1 - Initial Margin Rate*)
For Sell/Short:
Bankruptcy Price= Entry Price × (1 + Initial Margin Rate*)
*Initial Margin Rate (IMR) = 1/ Leverage
For example, traders hold a 1BTC Long position with an entry price at 10,000USDT, leverage is 50x.
Bankruptcy Price= 10,000 × (1 - 2%) = 9,800 USDT
Margin type: Cross Margin
Under Cross Margin Mode, all available margin in your UTA account is shared across your open positions. This means your entire account balance may be used to cover losses and help prevent liquidation.
Unlike Isolated Margin Mode, where the Bankruptcy Price is calculated based on an individual position, Cross Margin Mode determines liquidation risk based on your overall account risk and Maintenance Margin Rate.
The system evaluates several factors, including maintenance margin requirements, unrealized P&L of all open positions. These factors are used to calculate your Approximate Available Margin and assess your account’s overall risk.
Since these factors fluctuate with market conditions, your account risk is continuously recalculated in real time. As a result, the Bankruptcy Price under Cross Margin Mode is dynamic and cannot be precisely determined in advance.
For Buy/Long:
Bankruptcy Price = (Entry Price x Position Size − Approximate Available Margin) ÷ [Position Size − (Position Size x Taker Fee Rate)]
For Sell/Short:
Bankruptcy Price = (Approximate Available Margin + Entry Price x Position Size) ÷ [Position Size + (Position Size x Taker Fee Rate)]