BitFrog Liquidation Policy

1. What is Liquidation?

Liquidation means forced position closure—when losses are about to exhaust your Collateral, the platform immediately closes positions to prevent losses from touching the Margin Financing capital, thereby protecting the investors’ funds.

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2. Trigger Conditions

In BitFrog financing trades:

• Liquidation is triggered when losses on Collateral reach 95%.

• The remaining 5% of Collateral is reserved as a buffer and allocated to the Risk Protection Fund.

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3. Example

• Collateral: 1,000 USDT

• Financing: 3,000 USDT

• Total Funds: 4,000 USDT

• Liquidation Threshold: total loss of 950 USDT (50 USDT remaining)

Process:

• Start with 4,000 USDT (1,000 Collateral + 3,000 Financing)

• A loss of 950 USDT → account equity 3,050 USDT

• System triggers liquidation and closes all positions in the financed account

• The remaining 50 USDT Collateral goes to the Risk Protection Fund to cover extreme-market gaps

• This financing session is settled; the remaining Collateral from this session is not retained

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4. Why 95%?

• To reserve a 5% buffer for slippage in extreme volatility and avoid touching financing capital

• The Risk Protection Fund further safeguards investors’ capital

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5. How to Avoid Liquidation?

• Use lower leverage to tolerate greater volatility

• Set stop-losses early; consider reducing exposure as losses approach 90% of Collateral

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Summary

If your Collateral is 1,000 USDT and Financing is 3,000 USDT, once losses reach 950 USDT (95% of Collateral), BitFrog will liquidate immediately; the remaining 50 USDT is allocated to the Risk Protection Fund and is not refundable.

^{_{Disclaimer:BitFrog reserves the right, at its sole discretion, to modify, amend, or cancel this notice at any time without prior notice.}}