🛟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.

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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)

Fees include: Close Fee, Holding Fee, and Funding Fee.

Liquidation Loss Rate = 85%

Position Size (in Quantity) = Initial Collateral × Leverage ÷ Entry Price

A position will be liquidated once it has lost 85% or more of its value.