Upon a maintenance margin breach, Thalex uses an incremental auto-liquidation system to (partly) liquidate your position. Thalex enters risk reducing orders as immediate-or-cancel limit orders to reduce the risk profile of your position (the delta exposure). These orders are sent to the market for a time period of 30 seconds, until the deltas are flattened or initial margin has been restored. Such orders are filled at the best available price(s) at the time the order was submitted, which may or may not completely liquidate your position.
The aim of the auto-liquidation system is to restore your margin balance to the level of initial margin within the 30 seconds’ time period. If successful, the part of the position which has not been liquidated (if any) will remain open and control of your account will be returned to you. If unsuccessful, the Thalex Risk team may attempt to auto-liquidate your position once more or start the liquidation auction process.
For more information on the liquidation process and other procedures that Thalex may initiate, please consult the Rulebook.