Liquidation is when Roxom automatically closes your position because your collateral is no longer enough to keep it open.
It’s a risk control that protects you from going into a negative balance — but it also means you lose the margin assigned to that position.
🚨 When liquidation happens
Your position is at risk when your Margin Ratio reaches 100% — this means your equity equals the Maintenance Margin required.
On Roxom, you’ll get a warning when your margin ratio approaches ~80%, but if it hits 100%:
Your open orders for that contract are cancelled.
The system tries to close your position at or above your Bankruptcy Price.
If there’s any margin left after closing, it goes to Roxom’s Insurance Fund.
If there’s a shortfall, the Insurance Fund covers it so you don’t go negative.
📚 Learn exactly how margin ratio, liquidation price, and bankruptcy price work in the Margin & Risk section of our Rulebook.
💡 Example
You’re long 1 BTC of GOLD/BTC with 10x leverage.
Initial Margin = 0.1 BTC
Maintenance Margin = 0.05 BTC
If losses reduce your equity to 0.05 BTC, your margin ratio is 100% and liquidation will be triggered.
✅ How to reduce your liquidation risk
Watch your Margin Ratio — keep it well below 80%.
Add more collateral to your position.
Reduce leverage.
Use Stop Loss to exit before you get too close.
Avoid leaving large positions open without monitoring.
📚 See how to set stop orders in the Order Types & Execution Rules section of our Rulebook.
🔍 After liquidation
If your position is liquidated:
It will show as closed in your history.
Your margin is lost for that position.
You can keep trading with any remaining available balance in your account.