Important Update: Adjustment of Liquidation Debt Ratio for Margin Trading
Dear KuCoin Users,
To enhance risk management and promote a healthier trading environment, KuCoin will adjust the Liquidation debt ratio for Margin trading positions. This announcement provides the essential details of this update.
1. Key Changes to Liquidation Debt Ratio
The primary change involves lowering the threshold at which a margin position is subject to forced liquidation (Liquidation Debt Ratio). This adjustment aims to provide an additional buffer against market volatility.
The changes are summarized in the table below:
| Metric | Previous Threshold | New Threshold |
| Liquidation Debt Ratio (Forced Liquidation) | 97% | 95% |
|
Margin Call Debt Ratio (Early Warning)
|
95% | 92% |
The Debt Ratio is calculated using the following formula:
Debt Ratio = Total Debt / Total Margin Asset Value （Asset Value = Position Quantity × Coin Index Price × Margin Coefficient）
Learn more: Margin Trading Risk Limits and Margin Coefficient
2. Effective Date
The update will take effect on March 5, 2026, at 06:00 (UTC). Should there be any adjustments due to market conditions or other factors, we will announce the latest effective date via a new notice.
3. Impact on Your Positions
The change will primarily affect users with existing margin positions where the debt ratio is currently at or above 95%. If your position's debt ratio meets this criterion, it will become subject to immediate liquidation risk once the new thresholds take effect.
To avoid unintended liquidation, we strongly advise you to monitor your positions and proactively reduce your Debt Ratio before the adjustment date.
4. Risk Management Recommendations
Margin trading can amplify both gains and losses, we encourage all users to practice sound risk management:
Use Stop-Loss and Take-Profit Orders: These tools can help you manage risk automatically.
Monitor Your Margin Level: Keep a close eye on your debt Ratio and available margin.
Start with Lower margin: If you are new to Margin trading, consider using lower leverage ratios to better understand the associated risks
5. Getting Support
If you have any questions or need assistance, our 24/7 support team is here to help. Thank you for being a valued KuCoin user. We are committed to providing you with a secure and transparent trading experience.
We apologize for any inconvenience caused and appreciate your patience.
Thanks for your understanding and support!
The KuCoin Team
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