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.

Positions can only be liquidated using the Mark Price (the price from the price source).

When a position is liquidated, the collateral for the position is lost.

Liquidation Price Formula

LP=NLP±PCLP = NLP ± P * C

Definitions

LP

Liquidation Price

NLP

Net Liquidation Price

P

Entry Price

C

Margin Call Coefficient

M

Margin (Collateral)

MOV

Allowed price movement before margin call

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

Formulas

Parameter

Formula

NL

P ± MOV

MOV

(M - FC) / S

FC

S * P * FB * FR

C

MM / L

L

P * S / M

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