# Liquidation

### When is liquidation triggered?

A position will be liquidated under either of the following conditions:

* The **market price** reaches the **liquidation price**.
* The **collateral becomes insufficient** to cover outstanding fees.

***

### How is the Liquidation Price calculated?

#### Long Position

Liquidation Price = Entry Price - (Collateral × Liquidation Loss Rate - Fees) ÷ Position Size (in Quantity)

#### Short Position

Liquidation Price = Entry Price + (Collateral × Liquidation Loss Rate - Fees) ÷ Position Size (in Quantity)

{% hint style="info" %}
Fees include: Close Fee, Holding Fee, and Funding Fee.

Liquidation Loss Rate = 85%

Position Size (in Quantity) = Initial Collateral × Leverage ÷ Entry Price
{% endhint %}

{% hint style="info" %}
A position will be liquidated once it has lost **85% or more of its value**.
{% endhint %}

#### Minimum Position Leverage

Positions with leverage below **1x** will be automatically closed.

This is a minimum leverage requirement and is separate from standard liquidation. Users should monitor their position leverage to avoid unexpected auto-closure.


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