How to avoid liquidation when trading crypto futures
Liquidation is what scares leveraged traders the most. See how it happens and how the bot uses isolated margin, an exit zone and exchange-side insurance orders to get out before it gets there.
One fast move and the position is gone
Anyone who has been liquidated knows how it goes: the price jumps, the exchange force-closes the position and the entire margin for that trade is gone. Often the price comes back right afterwards, but by then it's too late.
That fear makes many people trade with too small an amount, or not trade at all. But liquidation isn't random: it has a price you can calculate, and you can set up the trade to exit well before it.
- High leverage with little margin buffer.
- Cross margin, where one loss drags down the balance of the whole account.
- A stop that doesn't fill at the expected price when the market spikes.
- Missing the alert because you were asleep or offline.
How liquidation happens
Every leveraged position has a liquidation price: the point at which the margin set aside for it no longer covers the loss. The higher the leverage, the closer it sits to the entry price. At 10x, a move of about 10% against the position is already enough.
In arbitrage the two legs offset each other, but each has its own liquidation. If the price rises a lot, the short leg can get close to it, even with the long leg in profit. That's why protection has to watch both legs.
Three stops per trade, in three layers
Funding Day Trade and Funding Scalp trades use isolated margin and three protections in sequence, so you get out before reaching liquidation.
The bot's exit zone, at 80% of the way
When the price covers 80% of the distance between entry and liquidation, the bot closes both legs in slices, using IOC orders with a price cap.
Exchange-side insurance orders, at 90%
Stops and targets are placed on the exchange itself, in 5 layers per leg. They stay in force even if the bot or the server goes offline.
Isolated liquidation, at 100%
If everything else fails, the maximum loss on each leg is only the margin set aside for it, not your account balance.
The same product, whichever pain point brought you here
Wherever you start, you end up in the same place: a dashboard with arbitrage bots that trade both legs at the same time, with protection on every trade.
Funding Day Trade
Enters close to the funding payment on both exchanges at the same time, collects it and exits.
Funding Scalp
A window of a few minutes around the payment, with a minimum profit calculated on the margin.
Futures Price Arbitrage
The price difference of the same contract between two exchanges.
Liquidity Pool
Trades run jointly, with the result split according to your share.
Keys without withdrawal
No project needs withdrawal permission. Your money stays on your exchange.
3 stops per trade
Exit zone, exchange-side insurance orders and isolated liquidation, so you get out before the worst.
Frequently asked questions
What is isolated margin?
It's when each position has a separate margin. If it gets liquidated, you lose only that margin, not the rest of your account balance.
Can I choose the leverage?
Yes. The lower the leverage, the further away liquidation is. The guided setup explains the effect of each value.
What happens if the bot goes offline?
The insurance stops and targets stay in place on your exchange and trigger without depending on the bot.
Does this apply to every project?
The three-layer structure applies to the two main trade types, Funding Day Trade and Funding Scalp.
Does Multi Arbitrage guarantee profit?
No. No result is guaranteed. Trading crypto derivatives involves risk of loss, including the full amount in a trade. The figures shown on these pages are examples.
Do I need an exchange account?
Yes. You trade in your own account and add an API key without withdrawal permission to the system. Automatic trading works on the exchanges already validated for customers: today Binance, Gate, Bitget, BingX, XT and Phemex. The others will be added gradually.
Start with $30 in credits
Connect your exchanges with keys that can't withdraw and let the bot work. You pay 30% of the profit, and only when there is a profit.
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This content is for information only and is not investment advice. Trading crypto derivatives involves a high risk, including the total loss of your capital. Past results do not guarantee future results, and the figures mentioned are examples. Before trading, check whether trading crypto derivatives is allowed in your country and what your tax obligations are. Assess whether the product suits your profile before investing.