Liquidation Price
The price when the position is liquidated.
The liquidation price for a position is calculated based on the entry price and amount of collateral provided. The higher the leverage, the lower the collateral amount, therefore the higher the risk of liquidation.
When a position is liquidated, the user loses all the collateral reserved on the position.
Positions can only be liquidated using the price from the Oracle. When our server detects a position due for liquidation based on the Mark Price, it requests the last traded price from the Oracle.
If the liquidation price was generated by a short spike in the mark price and the price swiftly exits the liquidation range, the position will not be liquidated as the price provided by the Oracle comes with a delay of approx. 1min. So if the liquidation price was touched for less than 1 minute, the user's position is safe.

## Liquidation Price Formula

$LP = NL ± P * C$

### Definitions

Parameter
Description
LP
Liquidation Price
NL
Net Liquidation Price
P
Entry Price
C
Liquidation Coefficient
M
Margin (Collateral)
MOV
Allowed price movement before liquidation
FC
Funding Cost
S
Position Size
FB
Funding Blocks (the number of blocks the position is opened for)
FR
Funding Rate (rate per block)
L
Leverage
MM
Maintenance Margin

Parameter
Formula
NL
P ± MOV
MOV
(M - FC) / S
FC
S * P * FB * FR
C
MM / L
L
P * S / M

### ​

Use Stop-Limit (Stop-Loss) orders to prevent the position from getting liquidated!