Announcement on the Optimization and Upgrade of the Margin Trading Liquidation System

02/24/2026, 23:12:02

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Dear KuCoin Users,

To enhance the safety and experience of your trading, we will be optimizing and upgrading the liquidation system for our platform's Margin trading services.  
 
This upgrade will be gradually rolled out to users starting from the date of this announcement and will be fully effective for all Margin users by 08:00:00 (UTC) on March 5, 2026.  Please consistently monitor the risk rate of your account assets to avoid potential losses. 
 
Key Points of the Liquidation System Upgrade
  • Changes to Liquidation and Settlement Process: When a liquidation is triggered, the system will use your collateral assets (e.g., BTC) to settle your liabilities (e.g., USDT). 
  • The specific process is as follows: The system will first offset assets and liabilities, retaining only net assets and net liabilities. It will then calculate the value of the corresponding assets and liqudation fees required based on the net liability value, followed by calculating the required quantity of assets. 
  • During this process, liqudation fees will be charged according to the respective coin's disposal rate and disposal sequence. Finally, the system will deduct the corresponding quantity of assets. 
  • If the asset value is sufficient to cover the liability + liqudation fee value, only the required amount will be deducted. If it is insufficient, all assets will be taken. 
    • Example 1: No Shortfall, Assets Sufficient to Cover Liability and Liqudation Fees
      • Assets: 30 BTC, 970 ETH | Price: BTC 100 USDT, ETH 10 USDT | Total Asset Value: 12700 USDT
      • Liabilities: 12000 XRP | Price: XRP 1 USDT | Total Liability Value: 12000 USDT
      • Assets used to repay liabilities, taken in descending order of disposal priority: 30 BTC, 900 ETH
        • BTC asset disposal fee: 30 * 100 * 2.5% = 75 USDT
        • ETH asset disposal fee: 900 * 10 * 2.5% = 225 USDT
        • XRP liability disposal fee: 12000 * 1 * 3% = 360 USDT
        • Total required disposal fee: 660 USDT. Additional ETH convertible at this point.
        • Additional ETH required: 660 / 10 = 66
        • Total assets required: 30 BTC, 966 ETH
        • Remaining in account: 4 ETH
         
    • Example 2: No Shortfall, Assets Sufficient to Cover Liability but Insufficient for Liqudation Fees
      • Assets: 30 BTC, 920 ETH | Price: BTC 100 USDT, ETH 10 USDT | Total Asset Value: 12200 USDT
      • Liabilities: 12000 XRP | Price: XRP 1 USDT | Total Liability Value: 12000 USDT
      • Assets used to repay liabilities, taken in descending order of disposal priority: 30 BTC, 900 ETH
        • BTC asset disposal fee: 30 * 100 * 2.5% = 75 USDT
        • ETH asset disposal fee: 900 * 10 * 2.5% = 225 USDT
        • XRP liability disposal fee: 12000 * 1 * 3% = 360 USDT
        • Total required disposal fee: 660 USDT. Additional convertible ETH value at this point is only 200 USDT.
        • All assets taken: 30 BTC, 920 ETH
        • No assets remaining in account.
         
    • Example 3: Shortfall, Assets Insufficient to Cover Liability and Liqudation Fees
      • Assets: 30 BTC, 890 ETH | Price: BTC 100 USDT, ETH 10 USDT | Total Asset Value: 11900 USDT
      • Liabilities: 12000 XRP | Price: XRP 1 USDT | Total Liability Value: 12000 USDT
      • Assets used to repay liabilities, taken in descending order of disposal priority: 30 BTC, 890 ETH
        • Due to the shortfall, no disposal fees are calculated.
      • All assets taken: 30 BTC, 890 ETH
      • No assets remaining in account.

 

Liquidation Asset Disposal Sequence

 

Liquidation Sequence Tokens
1-50 USDT, BTC, ETH, USDC, SOL, XRP, DOGE, SUI, ADA, LINK, TON, AVAX, LTC, TRX, BNB, XLM, ZEC, DOT, UNI, AAVE, NEAR, BCH, HBAR, SHIB, ENA, PEPE, TRUMP, WLD, TAO, POL, SEI, INJ, ONDO, ICP, WIF, PUMP, FIL, ARB, DASH, CRV, PENGU, FET, NXPC, CAKE, ALGO, PYTH, EIGEN, ZRO, APT, BONK
51-112 ETC, OP, LDO, WCT, LUNC, VET, KCS, ATOM, FLOKI, TIA, JUP, RUNE, GALAX, PROVE, USUALS, JASMY, ASTER, IP, CATI, XTZ, QNT, ORDI, VELO, CFX, ENS, STRK, METIS, BIO, CHZ, CKB, ANIME, NEO, PNUT, MOVE, AR, APE, MUBARAK, INIT, IMX, ZIL, COMP, BB, THETA, TREE, RSR, SOPH, NOT, AEVO, NEIROCTO, MANA, SUSHI, LUNA, BOME, ILV, BLUR, YGG, YFI, EGLD, SNX, DGB, PAXG

 

Changes to Liquidation Fees: 

  • The system will charge a liquidation liqudation fee during the position liquidation process. Fees are calculated separately for the sold margin assets and the purchased liabilities to be repaid. Different coin assets and liabilities have different liquidation fee rates. Please refer to the table below for specific rates. 

 

Group Liquidation Fee Rate Tokens
1 0.00% USDT
2 1.00% USDC
3 2.00%

BTC, ETH, SOL, DOGE, SUI, LINK, BNB, LTC, ZEC, TRX, ADA, XLM, TON, WLFI, WLD, PAXG, DASH, AVAX, NEAR
4 2.25% TAO, PEPE, HBAR, UNI, TRUMP, XDC, ICP, BCH, SHIB, INJ, ONDO, ENA, FIL, ASTER, XPL, DOT, AAVE, HYPE, PUMP, SEI, LINEA, POL, ZRO, FET
5 2.50% W, WIF, CRV, PENGU, ZORA, ATH, ARB, NIGHT, KAS, NXPC, MON, ETHFI, ROSE, APT, LDO, OP, ETC, SOMI, RENDER, ZEN, FARTCOIN, CAKE, FLOKI, WCT, WAL, SXT
6 3.00% PYTH, VET, GALAX, ALGO, VIRTUAL, KCS, RSR, BONK, STRK, ORDI, INIT, LUNC, TIA, USUAL, CFX, ZKC, CHZ, YB, NOT, FLUX, CRO, VELO, EIGEN, RUNE, HYPER, ATOM, PROVE, IO, MINA, LA, OPEN, NIL, SPX, KAITO, SAPE, PLUME, MOODENG, THETA, BOME, CATI, BIO, JUP, H, QNT, MMT, BANANA, ANIME, XTZ, RAY, BRETT, ZIL, SOPH, JASMY, PNUT, AR, STX, BERA, FOGO, USTC, METIS
7 4.00% ALLO, SOLV, GRT, NEIROCTO, ENS, NEO, TURBO, HOLO, MOVE, BREV, CKB, TUT, DYDX, YFI, TREE, CETUS, MANA, XAI, TRB, GUN, LUNA, SUSHI, KAVA, MUBARAK, COMP, TNSR, KERNEL, SNX, YGG, SAND
8 4.50% EGLD, LPT, BB, 1INCH, AEVO, ILV, SKL, IMX, SUPER, IOTX, HUMA, MEME, BLUR, COOKIE, IP, ACH, API3, DGB

 

Margin Liquidation Change Timeline

  • Full User Change Effective Time: 08:00:00 (UTC) on March 5, 2026. 
  • To ensure a stable transition to the new liquidation system, we will begin gradually switching some users starting from 08:00:00 (UTC) on February 25, 2026, until it is fully effective. Users who have not been switched over will continue to be charged the current 1% liquidation fee, while other aspects will follow the new logic described above. 

Friendly Reminders

  • Use Margin with Caution: Fully understand that Margin trading amplifies both potential profits and risks. Please choose your margin multiple prudently according to your risk tolerance.                                    
  • Monitor Your Positions Closely: Keep a real-time watch on your account's Debt Ratio and asset price fluctuations. Maintain the safety of your positions by adding margins or proactively reducing your position size in a timely manner.

 

Thanks for your understanding and support!

The KuCoin Team

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