BitWell Perpetual Contracts Position Margin Mode Rules

BitWell perpetual contracts support four modes: Isolated-Merge, Isolated-Split, Cross-Merge, Cross-Split. The default is Cross-Merge mode, and each trading pair needs to set the margin mode separately.

Isolated-Merge mode: Positions of the same trading pair with the same direction and the same leverage will be merged. If the liquidation happens, only the margin of the corresponding position is lost.

For example: If A open 2 long BTC positions of 100 conts with 10x leverage, the positions will be merged into a single long BTC position of 200 conts BTC, and the opening price is the average open price of the 2 positions. When the position is liquidated, only the occupied margin of the position will be lost, without affecting other positions.

Isolated-Split mode: Positions of the same trading pair with the same direction and the same leverage are not merged. If the liquidation happens, only the margin of the corresponding position is lost.

For example: If A has 2 long BTC positions, each position is displayed separately and will not be merged. Also, the margin and liquidation price of each position are calculated separately. When the position is liquidated, only the occupied margin of the position will be lost, without affecting other positions.

Cross-Merge mode: Positions of the same trading pair with the same direction will be merged. The available balance in the perpetual account is used as margin, and the liquidation risk is lower.

For example: If A open 2 long BTC positions of 100 conts, the positions will be merged into a single long position of 200 conts BTC, and the opening price is the average open price of the 2 positions. The perpetual account available balance and the occupied margin are all used as position margin.

Cross-Split mode: Positions of the same trading pair with the same direction are not merged. The available balance in the perpetual account is used as margin, and the liquidation risk is lower.

For example: If A has 2 long BTC positions of 100 conts, each position is shown separately and will not be merged. When a position is liquidated, the occupied margin and available balance of perpetual account will be lost. You can transfer USDT to the perpetual contract account to increase the margin to reduce the risk of liquidation.

The logic of closing positions

Users can choose to close a specified position or use the system’s preset sequence to close positions. Currently the system supports the following 3 sequences:

  1. Depending on the opening time: users can choose to close the positions that were opened earlier or later first.
  2. Depending on the extent of floating profit or loss: users can close the position with more floating profit first, or the position with more floating loss first. It is important to note that the floating profit and loss here refer to the value at the time of placing the orders, not the profit and loss at the time of closing the position.
  3. Depending on the level of leverage of each position: uses can send an order to the system to close a position with high leverage first, or a position with low leverage first.

Risk Warning:

Cryptocurrency investment is innovative blockchain products, and subject to price fluctuation. Please judge your risk-taking ability rationally and make your investments with caution.

BitWell is not responsible for any direct, indirect or consequential losses as a result of the cryptocurrency trading and holding.

BitWell Team



BitWell is committed to building a fair and transparent global digital asset trading platform, providing investors with secure, convenient and intelligent blockchain derivatives trading services.

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