#liquidations

Liquidation happens when your margin falls below the maintenance threshold. Understanding the trigger conditions, how mark price differs from last-traded price, and how BULK Exchange handles liquidations differently from most exchanges can prevent unexpected losses.

BULK Exchange's liquidation engine doesn't just close the worst position first. It runs a 100-cycle optimizer that skips positions that provide hedging benefit, targeting margin recovery with minimal portfolio disruption.

Auto-deleveraging (ADL) is the mechanism of last resort on BULK Exchange. It triggers only when the insurance fund is insufficient to cover a liquidation shortfall. BULK describes it as "an exceptionally rare event." This page explains how it works and who it affects.