When the risk rate is too high, there are two direct actions: reduce positions first to lower leverage, then consider repaying debt. OKX's leverage risk control mechanism uses tiered forced liquidation—it doesn't liquidate everything at once, but gradually reduces positions until risk indicators return to safe levels. Understanding this mechanism helps you know which step to take first.
Step 1: Understand Your Risk Rate – Know Which Tier You're In
What to do: Confirm your current risk rate (margin ratio) value and see how close you are to forced liquidation.
How to do it: In the OKX leverage trading page, find the "Margin ratio" (MR%) field in the Positions list. Warning lines and forced liquidation lines differ by account mode:
Isolated Margin Mode
Margin ratio ≤ 300%: Warning line, system alerts you of position reduction risk
Margin ratio ≤ 100%: Triggers forced position reduction
Cross Margin Mode (Single-Currency / Multi-Currency)
Margin ratio ≤ 300%: Warning line, system alerts you of position reduction risk
Margin ratio ≤ 100%: Triggers forced liquidation process (cancels orders first, then reduces positions)
Contract Positions
Maintenance margin ratio ≤ 100%: Triggers position reduction or forced liquidation
Calculation formula (for an isolated short position): Margin ratio = [Position assets - (Liabilities + Interest) × Mark price] / (Maintenance margin + Reduction fee)
Completion criteria: You know your current margin ratio and how far it is from the 100% forced liquidation line.
High Risk Note: OKX's margin ratio is calculated using mark price, not the latest trade price. Even if the candlestick price hasn't hit the liquidation price, if the mark price reaches the threshold, the forced liquidation process will also trigger.
Step 2: Prioritize – Reduce Positions to Lower Risk Exposure
When your margin ratio is critical, the most direct and effective action is to actively reduce positions, not to hold on and wait for a recovery.
What to do: Actively close part of your positions to reduce your debt size and let the margin ratio recover.
How to do it:
Find the highest-risk positions in your Positions list.
Prioritize reducing the position with the highest leverage – higher leverage means the liquidation price is closer.
Prioritize reducing the most heavily losing position – the largest unrealized loss carries the most debt.
Click "Close Position," choose to close a portion (e.g., 50%); the system will execute at market price.
Why it's not recommended to repay debt first: Repaying debt requires you to hold the corresponding asset. If you don't have it, you need to buy it first and then repay. When the risk rate is already critical, this process takes time and may further increase position risk. Reducing positions, on the other hand, works directly on your existing positions, lowering your debt in one step.
Common reasons for failure: Many people think "just hold a bit longer and it'll recover," but when the risk rate is critical, if the market moves further against you, it triggers tiered forced liquidation — the system will first reduce a portion (tier 1), and if the margin ratio remains below 100%, it continues reducing positions until the threshold is satisfied. The execution price of forced liquidation is usually worse than if you closed the position yourself.
Step 3: If After Reducing Positions It's Still Not Enough, Handle the Debt
If after reducing positions your margin ratio is still too low, it means your debt is still too high compared to your remaining assets. You need to proactively repay some of the borrowed coins.
What to do: Use your own assets to repay part of the borrowed debt.
How to do it:
Go to the Assets page and check your current debt list.
If you hold the corresponding coin, click "Repay," enter the amount and confirm.
If you don't have the coin, you need to buy it in spot trading first, then repay.
Note: In multi-currency margin mode, closing a position does not automatically clear the debt. You need to manually buy the corresponding coin in spot trading to repay.
Completion criteria: After reducing positions and repaying debt, go back to the Positions page and confirm that the margin ratio has returned to a safe level.
How to verify your actions: After reducing positions, check the Positions list to confirm whether the margin ratio has increased. If it is still below 100%, continue reducing positions or repaying debt. Also check whether the "liquidation price" has moved away from the current market price — for a long position, the liquidation price should shift lower; for a short position, it should shift higher. This means your safety buffer has increased.
