KuCoin Cross Margin Asset Delisting Optimization
02/19/2025, 18:42:01
Dear KuCoin Users,
To further enhance the user experience, KuCoin Cross-Margin has been upgrading the Cross-Margin asset delisting optimization.
When KuCoin Cross Margin delists a token, the steps are as follows:
Step 1: User Asset and Liability Settlement for Delisted Token
Scenario 1: Asset > Liability
• When the user's assets of the delisted token >= liabilities, the system automatically uses the assets in the Margin account to repay liabilities.
Scenario 2: Asset < Liability
• When the user's Margin Account holds assets of the delisted token < liabilities, the system will perform a partial forced liquidation operation, sell other assets in the user's Margin Account in descending value, and buy delisted tokens to repay liabilities until the remaining liabilities are repaid.
Step 2: Transfer of Delisted Token After Liability Settlement
After completing Step 1 and settling liabilities, the system will transfer the delisted token from the Margin Account. The system will verify the current account’s debt ratio and take the following actions:
Scenario 1: Debt Ratio <= 85% After Transfer
• Through the transfer verification, if the delisted token calculates the debt ratio after transfer <=85%, the system will directly transfer the delisted assets out of the Margin Account.
Scenario 2: Debt Ratio > 85% After Transfer
• Through the transfer verification, if the account debt ratio of the delisted token is > 85% after the delisted token is calculated, the system will force liquidation of the assets, convert the remaining delisted assets into USDT and retain them in the user's Margin Account;
* For example, if the user holds 100 ABC with a current debt ratio of 60%, after transferring 40 ABC, if the debt ratio rises to 85%, the system will transfer out 40 ABC and convert the remaining 60 ABC into an equivalent amount of USDT (based on the price and depth of the ABC at the time of liquidation).
Step 3: Delisting Process Completion
The delisting process will be considered complete when all margin users no longer hold any assets or liabilities in the delisted token.
Important Notes:
1. When you receive a KuCoin Margin Trading delisting notice, we strongly recommend that you proactively manage the assets and liabilities of the coin to be delisted. The system’s asset liquidation process may incur unnecessary losses based on the current price and depth of the coin;
2. The debt ratios for Isolated margin and Cross-Margin positions are calculated independently and do not interfere with each other;
3. When the system handles a delisted token, the assets and liabilities in both Isolated and Cross-Margin positions will be settled independently. For example, in a Cross-Margin position, the delisted token assets cannot automatically pay off Isolated Margin liabilities and need to be manually handled by the user;
4. The Isolated Margin delisting process remains unchanged.
Risk Warning
Margin trading refers to the practice of borrowing funds with a relatively lower amount of capital to trade financial assets and obtain bigger profits. However, due to market risks, price fluctuations, and other factors, you are strongly recommended to be prudent about your investment actions, adopt an appropriate leverage level for margin trading, and properly stop your losses in a timely manner. KuCoin assumes no responsibility for any losses arising from the trade.
Thanks for your support!
The KuCoin Team
Find The Next Crypto Gem On KuCoin!