Liquidations

A liquidation occurs when your position's losses reduce the margin value to a level where the protocol can no longer guarantee repayment to lenders. When the market price reaches your liquidation price, the position is automatically closed.

Liquidation price Your liquidation price is calculated at the time of opening the position based on your margin amount and leverage. It is displayed in the order panel before you confirm the trade, and visible in the Open Positions tab while the position is live.

The higher the leverage, the closer the liquidation price is to your entry price.

What happens at liquidation When a position is liquidated, it is closed automatically by the protocol. The remaining margin after covering the borrowed amount and fees is returned to your wallet. Depending on how quickly the price moved, the returned amount may be zero.

How to avoid liquidation

• Use lower leverage

• Set a Stop Loss before the liquidation price

• Monitor your open positions regularly