When the funding rate is positive, longs pay shorts; when negative, shorts pay longs. Funding is settled periodically on position value between traders; the platform does not take a cut.
How liquidation works
When the mark price reaches the liquidation price and the margin ratio hits 100%, the system takes over the position and closes it at the bankruptcy price.
Large positions are reduced step by step through the risk tiers to keep as much of the position as possible.
Remaining margin after liquidation goes to the insurance fund, and liquidation never leaves your account with a negative balance.
You are alerted by inbox message, email and push notification when the margin ratio passes 80%.
Leveraged trading is high risk and may lose your entire margin. Use stop losses and keep leverage under control.