Liquidation Price

The price when the position is margin called.

The margin call 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 a margin call.

When a position is liquidated, it is closed at the market price, and all remaining collateral is returned to the user.

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

When a position is liquidated, the transaction fee can go up to 1% depending on the price volatility during liquidation.

Liquidation Price Formula

$$LP = NLP ± P * C$$

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

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