As part of our mission to provide the best trading experience for our customers, we are going to release a brand new trading engine in the next few months. As a result, we will be shutting down our current margin and lending products as we work to build a bigger and better margin trading experience for everyone.
You will have ample time to wind down your margin positions before collateral devaluation and liquidations begin. All pairs will remain available to trade on the spot market. Users are invited to close their margin positions and move funds out of their margin accounts and into their spot or futures trading accounts as soon as possible.
We will begin the process of margin shutdown on March 9th, 2022. Here are some important dates to keep in mind:
- March 9, 2022 at 18:00 UTC:
- You will no longer be able to transfer funds into your margin wallet or increase your margin positions in any market.
- All open margin orders will be canceled.
- Only orders that reduce your open margin positions will be accepted by the system.
- March 22 2022:
- We will start to reduce the value of the collateral held in your margin wallet.
- Devaluation will last 1 month. If you still hold open margin positions during devaluation, liquidations might occur to repay loans.
- April 22, 2022:
- We will begin the process of liquidating any remaining open margin positions and paying back all loans.
- April 29, 2022
- All funds will be transferred to your spot wallet. Margin and lending will be disabled.
Definition of Devaluation
Devaluation of margin position will be completed linearly from 100% to 0% and will close after one month on April 22, 2022.
Example: if user has 1 BTC collateral worth 40,000 USDT on Day 1 at 100%, value used towards margin calculation is 40,000 * 31/31 = 40,000. On Day 2, multiplier gets reduced by 1/31, so if BTC price goes to 41,000, collateral value is 41,000 * 30/31 = 39,677.42. This happens continuously until the last day where multiplier is 0 and value is 0.
A forced liquidation will occur if your Current Margin dips below your Maintenance Margin to ensure you do not default on your loans. More information can be found on the liquidation calculation here: https://poloniex.com/support/aboutMarginTrading/
Frequently Asked Questions
Q: Can I close my open margin positions?
A: Yes, you can close your margin positions using the ‘Close’ button under ‘Open Position’ within the margin trading page.
Q: Can I open any new margin positions?
A: As of March 9th, you will no longer be allowed to open margin positions.
Q: What happens if I don’t close my position(s)?
A: Any remaining positions will be force liquidated starting April 22nd.
February 24, 2022