Forced Liquidations – ACDX Help Center

Net Liquidation Value

ACDX monitors several margin levels to ensure the stability of the clearinghouse.
The Net Liquidation Value (NLV) is the total USD value of one's account (including deposited collateral and unrealized PNL) and is checked in real time to see if it is above the following thresholds.
If the NLV becomes low enough, the entire portfolio will be liquidated to protect the user and clearinghouse from negative account balances.
One can withdraw up to amount before NLV drops below Initial Margin.

Level	Description	Action if NLV goes below
Initial Margin	Level of margin to satisfy the initial margin requirement of all open positions	Trader will not be able to open any positions which increases margin usage until NLV surpasses Initial Margin requirement.
Liquidation	The level of margin that's required before a forced liquidation of the entire portfolio	All orders are cancelled. Non-cancellable market orders are submitted for all positions to close out the trader.

In the event that the trader has a negative USD balance after a forced liquidation, funds from the insurance fund will be drawn upon to satisfy payment obligations by the exchange.
If the insurance fund runs out, ACDX will employ its Deferred Payment System.