Liquidation occurs when the value of the collateral falls below the Locked Margin.
If you buy (n) LTC-BTC future contracts for a future price ‘f’, then your overall position size = n*m*f.
This means that the buyer of the Futures contract has agreed to buy n*m BTC at contract expiry, with each LTC priced at f BTC. Thus, at the time of settlement, the buyer needs to have n*m*f BTC to complete the contract.
However, you don’t need to have resources equal to the position size to execute the contract. This is exactly where EasyCoins’ leverage feature kicks in.