Lets assume current Mark Price is 9840. In this situation, incremental liquidation will apply. Because of adverse price movement, the remaining position margin is sufficient to support a position of only 62611 contracts. The system will thus attempt to liquidate a long position of 137389. This is the Partial Position in Liquidation or PPL. The maintenance margin required for a position of PPL’s size is 1.16%. Therefore, the liquidation price of PPL is set to 9728, i.e. 1% away from the current Mark Price of 9840. This means a sell limit IOC order with price of 9728 is sent to the order book to close PPL.