Liquidation starts when your Margin Level reaches 1.10×. Your Margin Level is the value of everything in your account after subtracting your debt, divided by that debt, with accrued interest included.

Liquidation does not pick one position over another. Because cross-margin pools all your collateral, the process looks at your whole Margin Wallet and follows a fixed sequence.

Step 1: your open limit orders are cancelled

This frees up the balances tied to those orders. If that alone brings your Margin Level back above 1.10×, liquidation stops here and your positions stay untouched.

Step 2: your assets are converted to US dollars

If your Margin Level is still too low, Bitso converts your collateral to US dollars. Assets go in a set order, based on how stable and liquid they are:

• Stable digital currencies and local currencies first, for example USD Coin (USDC), Tether (USDT), Mexican pesos, and Brazilian reais.
• Major digital assets next, for example Bitcoin (BTC) and Ethereum (ETH).
• Smaller and more volatile assets last.

This order protects your value: the most price-stable assets go first, and volatile ones are only touched if needed.

Step 3: your debt is repaid

The US dollars buy back the currencies you owe. For each debt, accrued interest is paid first, then the borrowed amount.

Step 4: anything left over returns to you

Whatever remains after debt, interest, and fees returns to your Margin Wallet in US dollars. You will see the result in your transaction history.

What this means in practice

If you hold two positions and liquidation starts, the question is not which one closes first. Your whole Margin Wallet goes through the sequence above. The conversion order depends on which assets you hold, not on the size, the profit, or the age of each position. This applies to any combination of assets.

While liquidation is running, new orders and transfers out of your Margin Wallet are blocked.