When the mark price changes to an unfavorable direction from the user's position, the available balance (referring to the available balance of the user’s BitForex Perpetual Contract Account) will be used preferentially to offset the unrealized loss.
When the available Balance ≤ maintenance margin (the mark price falls to liquidation price), the position will be liquidated by the liquidation engine at the bankruptcy price.
If the liquidation engine successfully closes the position at a better price than this position’s bankruptcy price, the additional funds will be sent to the insurance fund.
If price volatility gets too high and the final execution price is worse than its bankruptcy price, the insurance fund will be used to cover the contract loss. If this still does not close the liquidated order, this will then trigger the automatic deleveraging system.