How Liquidation Works and What Triggers It on Pluang Futures

On Pluang's crypto futures platform, liquidation is triggered when your margin balance falls to the maintenance margin level — the minimum amount required to keep a position open. At that point, Pluang's liquidation engine takes over the position and closes it to prevent further loss. The trigger is measured continuously against the mark price, not the last traded price. What happens to your balance after that point depends entirely on which margin mode you had active on that position.

How liquidation works on Pluang:

• Trigger: Liquidation occurs when losses erode your margin down to the maintenance margin threshold. Pluang uses mark price (not last price) to avoid wicks triggering unnecessary liquidations.
• Liquidation process: Pluang's system attempts to close the position at the best available market price before your margin is fully exhausted.
• Insurance fund: If the position cannot be closed above zero, Pluang's insurance fund covers the shortfall, preventing losses from being socialised to other traders. Auto-deleveraging (ADL) is only used as a last resort.
• Isolated vs. cross margin: Isolated margin limits risk to the margin allocated for that position only. Cross margin can draw on and forfeit your entire shared Futures balance across positions using that mode, which can delay liquidation but exposes more total funds.
• Prevention: Add margin to your position, reduce leverage, or set a stop-loss before the liquidation threshold is reached. Monitor your liquidation price and margin ratio in the Pluang app at all times.

Related questions:

Q: Does Pluang notify me before liquidating my position?
The Pluang app displays your margin ratio and liquidation price continuously — it is your responsibility to act before the threshold is reached, since the display is informational, not a guaranteed warning.

Q: What happens to my remaining margin after liquidation on Pluang?
Any margin remaining above the maintenance margin level is returned to your wallet; if the insurance fund is used, you may receive nothing from that position.

Q: Can I stop a liquidation in progress on Pluang?
Once the liquidation engine has taken over, you cannot cancel it; however, you can add margin to delay or prevent liquidation before it is triggered — acting early is what matters.

Q: Does my margin mode change what liquidation costs me?
Yes. Isolated margin caps your loss to that position's margin, while cross margin exposes your entire shared Futures balance across positions using that mode — choose deliberately.