Bitget TradFi 101: A Complete Guide to Liquidation and Margin Ratio

Bitget TradFi lets you trade traditional financial assets like forex, precious metals, commodities, and indices directly with USDT. It offers a seamless cross-market experience with "one account, one app, and one margin pool." But with high leverage and multiple products in TradFi, risk control matters more than ever. Many users coming from crypto futures can get caught off guard because Bitget TradFi's liquidation mechanism does not use an "estimated liquidation price." Instead, liquidation is triggered only by your margin level (also called the margin ratio).

How is margin level calculated?

The formula is simple:

Margin level = (equity ÷ used margin) × 100%

• Equity = total account balance + all unrealized PnL

• Used margin = Total margin allocated to all open positions

This follows the classic MT5/CFD model used by traditional forex brokers and differs significantly from the "maintenance margin rate" approach seen in crypto perpetual futures.

The 50% threshold: Where Bitget TradFi liquidation happens

If your margin level drops to 50% or below, the system will automatically trigger liquidation. Refer to the table below to understand the risk associated with different margin levels:

Bitget TradFi liquidation is triggered only by the real-time margin level reaching ≤ 50%, without reference to mark price or any estimated liquidation price. This is a fundamental difference from crypto futures mechanisms and a common source of user miscalculation.

Multi-position liquidation rule: Largest loss first

If you hold multiple positions (e.g., EURUSD + XAUUSD + USOIL) and your margin level falls to 50% or below, the system does not liquidate randomly. It follows this strict sequence:

1. Liquidate the position with the largest current floating loss.

2. Recalculate the margin level.

3. If it remains at ≤ 50%, liquidate the position with the next largest loss.

4. This continues until your margin level rises above 50%, or all positions are closed.

This "largest loss first" mechanism is designed to protect your remaining positions and give your account a better chance to recover, instead of closing everything at once.

Why is "watching margin level" more reliable than "calculating liquidation price"?

In crypto perpetual futures, users are accustomed to checking the distance from liquidation. However, this mindset can be problematic in Bitget TradFi:

• With positions across multiple assets, it's impossible to calculate a single, accurate liquidation price (each asset has different volatility, price level, and direction).
• In low-liquidity or extreme market conditions, the actual execution price can deviate significantly from the displayed quote (slippage).
• Margin level is a real-time, comprehensive metric of your account's health, factoring in all PnL and margin used. It is far more reliable than any estimated liquidation price.

In Bitget TradFi, watching your margin level is always more practical than watching an "estimated liquidation price".

Practical tips to avoid liquidation

1. Keep your margin level above 100% as a baseline (over 150% is safer).

2. Use leverage wisely. Even though some assets offer up to 500x leverage, a practical range is 10x–30x.

3. Set a reasonable stop-loss (SL) on every trade. Don't rely on hope to hold a losing position.

4. With positions across multiple assets, keep your total exposure below 8x–10x your account equity (as a general guideline).

5. Before major events or extreme volatility, reduce your positions by half or even 2/3. It is better to earn less than get liquidated.

6. Check your used margin and available margin regularly. Do not wait until you get a warning.

Final note

In Bitget TradFi, the real line that matters is a 50% margin level, not any calculated "estimated liquidation price". If you shift your focus from "distance to liquidation" to "what's my margin level now," you'll gain much clearer control over your risk.