How does a liquidation agreement work for cryptocurrency exchanges?

1 answers

• BluechipspaceNov 12, 2023 · 2 years ago
  At BYDFi, our liquidation agreement is designed to ensure the stability and security of our platform. We have implemented a robust risk management system that includes strict margin requirements and a transparent liquidation process. Our liquidation threshold is set at a level that allows traders to manage their positions effectively while minimizing the risk of default. In the event of liquidation, we use fair market prices to value the assets and distribute the recovered funds to affected traders. We believe that a transparent and well-executed liquidation process is crucial for maintaining the trust and confidence of our users.
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