What are Auto-Liquidation Alerts?

This article explains the three liquidation alert types available in Topstep Brokerage, how they are triggered, what clients receive, and what happens after a liquidation event.

What is it?

Topstep Brokerage uses in-platform alerts and email notifications to let clients know when they are approaching a liquidation event.

Note: These alerts are informational only. They do not guarantee avoidance of liquidation. Rapid market movement may result in liquidation before a client can take action.

What You're Receiving

There are three liquidation alerts you may see while trading in a brokerage account:

1. Minimum Account Balance Reached
2. End-of-Day Liquidation Warning
3. 96-Hour Contract Expiry Liquidation Warning

1. Minimum Account Balance Reached

This alert occurs when a client's balance, or equity, reaches $150. It is designed to let you know when you are approaching liquidation risk, so you can take action before losses continue.

Platform Alert:

[Account Name] balance is approaching the minimum threshold. Your account may be liquidated if losses continue.

Email Notification:

Subject: Action Needed: Your Account Balance Is Near Minimum

Your account [Account Name] has reached a low balance level and is approaching the minimum threshold required to maintain open positions.

If losses continue, your account may be subject to liquidation.

To reduce the likelihood of liquidation, you may:

• Reduce or close open positions
• Add funds to your account

Please take action as soon as possible to manage your risk.

2. End-of-Day Liquidation Warning

This alert appears when a client has an open position or working order on a contract that will be closing within 30 minutes. This applies even if the client otherwise has enough margin to hold overnight.

This alert accounts for symbol groups with early closes and holiday early closes.

NOTE: If a client opens an order or position after the 30-minute alert window and before the scheduled close, they will not receive the alert.

Platform Alert:

“End of day liquidation may occur 15 minutes prior to [contract name] session close. If purchasing power does not meet overnight margin requirements, positions and/or orders may be liquidated unless you take action.”

Email Notification:

Subject: Positions / Orders May Be Liquidated Before Session Close

Your account [Account Name] currently has open position(s) and/or working order(s) on the following contracts:

[list contract names]

If your purchasing power does not meet the overnight margin requirements, then it may be subject to an auto-liquidation 15 minutes prior to session close.

3. 96-Hour Contract Expiry Liquidation Warning

This alert occurs when a client holds open positions or working orders in contracts expiring within 96 hours that will be liquidated if unresolved. This gives clients time to close positions or cancel working orders before a contract is automatically liquidated.

Clients should receive this alert:

• 24 hours before the liquidation window
• 1 hour before the liquidation window

Platform Alert

[Contract] is expiring soon (expiration date). Automatic liquidation may occur 96 hours prior to the contract expiration date.

Email Notification

Subject: Expiring Contracts: Review now to avoid auto-liquidation

Hi [First Name],

Your account [Account Name] has open positions or working orders in a contract(s) approaching expiration.

If you do not close these positions, they may be subject to automatic liquidation up to 96 hours

prior to expiration.

To avoid automatic liquidation, please:

• Close any open positions in expiring contracts
• Cancel or update any working orders related to new positions

You are receiving this notice in advance so you have time to take action.

You may receive additional reminders closer to the liquidation window.

Why This Matters

These alerts are designed to help traders understand liquidation risk before it becomes a surprise. They provide advance notice, but they do not replace active risk management.

• Alerts are informational only.
• Fast market movement can still result in liquidation before you can react.
• You may receive more than one warning as the liquidation window gets closer.
• It is the client’s responsibility to monitor account balance, margin requirements, working orders, and contract expiration dates.

Note: Exchange Holidays & Abbreviated Sessions

For exchange holidays or abbreviated trading sessions, margins will not switch to 100% margin requirement, as these sessions enter a pre-open status with no end-of-day processing.

Consequently, margin calls are not issued on the standard EOD schedule during these instances.