Most BTEX contracts are highly leveraged. To keep these positions open, traders are required to hold a percentage of the value of the position on the exchange, known as the Maintenance Margin percentage.
If you cannot fulfill your maintenance requirement, you will be liquidated and your maintenance margin will be lost.
BTEX uses Fair Price Marking for the purpose of avoiding liquidation due to illiquid markets or manipulation.
If a liquidation is triggered, BTEX will cancel any open orders on the current contract in an attempt to free up margin and maintain the position. Orders on other contracts will still remain open.
If this does not satisfy the maintenance margin requirement then the position will be liquidated by the liquidation engine at the bankruptcy price.
If BTEX is able to liquidate the position at better than the bankruptcy price, the additional funds will be added to the Insurance Fund.
If BTEX is unable to liquidate the position at the bankruptcy price, BTEX will spend the Insurance Funds on aggressing the position in the market in an attempt to close it.
If this still does not close the liquidated order, this will then lead to an Auto-Deleveraging event.