Before forced liquidation is triggered, the system will first cancel certain pending orders in your account. In cross margin mode, all pending orders under that asset's contracts will be canceled; in isolated margin mode, only the pending orders tied to that specific position will be canceled, leaving other positions unaffected.
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1. The "Order Cancellation" Stage Before Liquidation: Why Cancel Orders First
Forced liquidation does not mean your position is closed the instant it's triggered. When the account margin rate approaches the danger threshold, the system first enters a "pre-deleveraging check" phase — and the first step is to cancel certain open orders.
The purpose of canceling orders is to release frozen margin. Every unfilled limit order freezes a portion of margin, which drags down your margin rate. Once orders are canceled, the frozen margin is released, and the margin rate may climb back above the safe threshold, potentially avoiding liquidation altogether.
So, order cancellation is the system's first line of defense to "rescue" your position — it's not a punitive measure.
2. Cross Margin vs. Isolated Margin: Completely Different Cancellation Scopes
Cross Margin Mode
All positions under the same margin asset share a single margin pool. Before liquidation is triggered, the system will cancel all unfilled pending orders for all contract directions under that asset.
If the margin rate still fails to meet the requirement after liquidation is triggered, the system will hand over all contracts from all positions under that asset to the liquidation engine.
Isolated Margin Mode
Each position is managed independently, with margin pools that do not affect one another. Before liquidation is triggered, the system only cancels the pending orders tied to that specific position, without affecting your other isolated margin positions in the same account. When the liquidation engine takes over, it will only process all contracts for that position and will not touch other positions.
3. Cross Margin vs. Isolated Margin: Order Cancellation Sequence Compared
| Dimension | Cross Margin Mode | Isolated Margin Mode |
|---|---|---|
| Cancellation Scope | All pending orders for all contracts under the same asset | Only pending orders for that specific position |
| Risk Control Logic | Release the entire margin pool for that asset | Release the frozen margin for that position |
| Liquidation Scope | All positions under that asset (losses may be distributed) | Only that position (other positions unaffected) |
| Operation Freeze | The entire asset's contract account is frozen; no operations allowed | Only that position is frozen; other positions remain operational |
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4. Two More Key Points
The system prioritizes canceling the most "dangerous" orders
When canceling orders, the risk control system evaluates the margin occupied by all pending orders and prioritizes canceling those that consume the most margin and drag the margin rate down the most.
Order status is checked repeatedly during liquidation
For forced partial position reduction (applies to large positions at tier 3 and above), the system checks the execution status about one minute after placing the reduction order. If the margin rate returns to safe levels after execution, the system will cancel the remaining unfilled reduction orders and halt the liquidation process — your position regains normal operational access. If the order remains unfilled or the margin rate still falls short after execution, the system will re-execute the process at market price.
Prerequisite: You hold an OKX contract position, and your account margin rate is approaching the danger threshold.
Risk Warning: In cross margin mode, the system cancels orders across a broader scope, which may leave you with little time to react before a full takeover occurs. In isolated margin mode, while risk is contained, if multiple positions simultaneously approach the danger line, each position is handled independently. A liquidated position will be handed over to the liquidation engine at the bankruptcy price (the price at which the margin rate reaches zero), and the maximum loss will not exceed the total margin allocated to that position.
After the above confirmations, how can you tell if your orders are about to be canceled?
Open the [Positions] panel and check the "margin rate" and "estimated liquidation price." If the margin rate has already dropped below 100%, the system may trigger order cancellation and position reduction at any moment. If you see pending orders for multiple positions being canceled simultaneously in cross margin mode, the system is attempting to release the margin pool. If only one position's orders disappear in isolated margin mode, that position is being processed independently. The best approach is to proactively reduce positions or add margin when the margin rate drops below 150%, rather than waiting for the system to step in on your behalf.
