Liquidation
Liquidation
Liquidation happens when your account equity falls beneath the required maintenance margin (set at 50% of initial margin at max leverage). The threshold varies by asset: as low as 1.25% (for 40x leverage), up to 16.7% (for 3x).
What happens during liquidation?
The platform triggers a liquidation by placing a market order to close your entire position.
If enough funds are recovered to restore required margin, any excess collateral is returned to you.
If the system can’t fully liquidate via the market and your equity drops below two-thirds of the maintenance margin, a backstop liquidation kicks in—positions are taken over by the Liquidator Vault.
Types of Margin in Liquidation:
Cross Margin: During a backstop event, all cross margin and open positions are transferred to the liquidator. If you have no isolated positions, your entire remaining equity is wiped.
Isolated Margin: Only the troubled isolated position (and its margin) is liquidated. Your other assets and cross margin positions are untouched.
Note: In any backstop event, maintenance margin isn’t refunded—this is a critical buffer that keeps liquidations viable for the system.
How to avoid liquidation
Use stop loss orders to manage risk proactively.
Monitor your position’s health and manually exit before breaching the maintenance threshold.
Mark Price & Robust Liquidation
This platform uses a mark price—an aggregate that blends external CEX prices with book data—to calculate liquidation. This approach is much more stable than raw order book pricing and helps shield you from unfair liquidations caused by brief volatility spikes.
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