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  4. Why was part or all of my position automatically closed?

Why was part or all of my position automatically closed?

Any user trading contracts on Phemex must have a minimum amount of funds (Maintenance Margin) in their account to keep a position open.

Even when the position has a positive PNL, the funds in the account may drop below the Maintenance Margin requirements due to Funding Fees.

If such is the case, the system will automatically calculate the number of contracts to be closed (Take Profit) in order to meet the Maintenance Margin requirements. Because prices are constantly fluctuating, there may be a discrepancy between the first batch of contracts closed and the number still needed to meet margin requirements. If the first round of closed contracts is still insufficient to meet margin requirements, the system will once again calculate a new number of contracts to be closed. It will continue with this process until the Maintenance Margin requirements are met.

For larger positions, the maximum number of contracts the system will automatically close each round is 10,000 contracts regardless of the symbol. The system will continue to close 10,000 or less at a time until margin requirements are met.

Please Note: This scenario only applies when a user’s position has a Positive PNL, but not enough margin to meet the minimum requirements. In the case of a negative PNL, please refer to liquidation.

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