How Does the Exchange’s Risk Engine Aim to Maximize the Residual Margin?

The risk engine aims to maximize residual margin by executing the liquidation order as quickly as possible and using sophisticated order types to minimize slippage. It often uses 'smart order routing' to find the best available price across different venues.

Crucially, it liquidates the position when the margin drops below the maintenance level, which is a buffer above the bankruptcy price, ensuring there is remaining collateral to capture as residual margin.