# Force Close

On the Trado platform, there are two scenarios that can trigger forced liquidation for users: reaching maximum profit or triggering liquidation due to losses.<br>

### Maximum Profit

When a user's position reaches the maximum profit, it triggers maximum profit-taking closing. The platform will close the contract position that has realized the maximum profit at the mark price to protect LP and platform liquidity. The maximum profit is typically 10 times the initial margin (slightly varies for each currency).<br>

1. Maximum Profit = Margin \* Maximum Profit Multiplier
2. For long positions: Maximum Profit Price = Opening Price + Maximum Profit / Quantity
3. For short positions: Maximum Profit Price = Opening Price - Maximum Profit / Quantity

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When maximum profit is triggered, the profit is not related to the leverage of the position but only to the maximum profit multiplier for that currency.More information about max profit rate please link to [Specifications](/perpetual/perp-info/specifications.md).

### Liquidation

When the net position value of a user's position falls below the minimum maintenance margin required for that position, the liquidation mechanism is triggered, leading to forced closure of the position. The current minimum maintenance margin rate on the platform is 0.5%. For more information on margin-related details, please refer to the margin section.

1. Net Value = Margin + Profit after Fees.
2. Minimum Maintenance Margin = Position Quantity \* Mark Price \* Maintenance Margin Rate + Estimated Closing Fees.
3. For long positions: Estimated Liquidation Price = (Margin + Fees - Opening Average Price \* Quantity) / (Quantity \* (Maintenance Margin Rate + Estimated Closing Fee Rate - 1)) For short positions: Estimated Liquidation Price = (Margin + Fees + Opening Average Price \* Quantity) / (Quantity \* (Maintenance Margin Rate + Estimated Closing Fee Rate + 1))

In general, the estimated liquidation fee rate for each currency is equal to its opening and closing fee rate.

Forced closure will result in the user losing all the margin associated with that position. The balance in the user's trading wallet will not be affected.


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