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, the exchange's liquidation engine takes over the position and closes it to prevent further loss, following a defined sequence rather than an instant, all-or-nothing cutoff. The trigger is measured continuously against the mark price, not the last traded price, specifically so a brief wick on the order book doesn't set off a liquidation that a more stable market reference wouldn't justify. What happens to your balance after that point — whether the loss stays contained to one position or draws on more of your funds — depends entirely on which margin mode you had active on that position.

• What triggers liquidation: Liquidation occurs when your position's losses erode your margin until it reaches the maintenance margin threshold. This is monitored continuously using the mark price, not the last price, to avoid liquidations caused by temporary price wicks or manipulation on a single venue. This is also why a position can be liquidated before the chart, which shows the last price, reaches its liquidation price.
• The liquidation process: When the maintenance margin threshold is breached, the exchange's liquidation system attempts to close the position at the best available market price, aiming to close it before your margin is fully exhausted and before losses spread further.
• Insurance fund: If the position cannot be closed above zero because the market moved too fast, the exchange's insurance fund covers the shortfall. This prevents losses from being passed on to other traders through a process called auto-deleveraging (ADL), which the CFX exchange uses only as a last resort.
• Isolated vs. cross margin affects liquidation risk: In isolated margin mode, only the margin allocated to that specific position is at risk, and a liquidation there doesn't touch your other positions or balance. In cross margin mode, your entire shared Futures balance across all positions using that mode can be drawn on and forfeited, which can delay liquidation on any single position but puts more of your total funds at risk if the market keeps moving against you.
• How to avoid liquidation: You can reduce liquidation risk by adding more margin to your position before the threshold is reached, reducing your leverage, or setting a stop-loss order. Monitor your liquidation price and margin ratio in the Pluang app at all times, since both shift as the market moves.

Related questions:

Q: Does Pluang notify me before liquidating my position?
The Pluang app displays your current margin ratio and liquidation price so you can monitor risk continuously — it is your responsibility to act before the threshold is reached, since the app's display is informational rather than a guaranteed advance warning. Checking the app during volatile periods gives you the best chance to react before the engine takes over, rather than discovering the outcome after the fact.

Q: What happens to my remaining margin after liquidation on Pluang?
Treat the margin backing a liquidated position as lost. How much of your balance that covers depends on the margin mode: under Isolated Margin, only the margin allocated to that position; under Cross Margin, your shared Futures balance across positions using that mode. See CFT-TXN-G-008.

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, which is why acting on margin call warnings early matters more than trying to intervene afterward. By the time the engine has started closing the position, the outcome is already determined and no manual override is available.

Q: Does my margin mode change what liquidation costs me?
Yes. Isolated margin caps your loss to the margin allocated to that specific position, while cross margin exposes your entire shared Futures balance across positions using that mode, which changes how much is actually at stake in a single liquidation event. Choosing the right mode upfront is one of the most consequential risk decisions you make on a position, well before liquidation ever becomes a concern.