An account's nominal equity equals the net asset after deducting the debt from the asset. To ensure security, HTX does not allow the circumstance of negative net assets to occur in an account. Formula: total value of collaterals – total value of debts > 0 or equity > 0.

HTX introduces Collateral Value and Maintenance Margin to better safeguard the interest of margin users. When a currency's asset balance in an account is positive, it will be included in the collateral value. When it's negative, it'll be included in the debt value.

Collateral value and maintenance margin are important factors in determining whether a position should be liquidated or not.

When total collateral value - total debt value > maintenance margin*100% , the position is safe. When total collateral value - total debt value < maintenance margin*100%, the position will be liquidated.

When liquidation happens, the system takes over both assets and debts of an account and liquidates the assets to repay the debts until all debts are paid up or the assets are depleted.