Liquidation

All open positions are subject to liquidation when the position’s equity value (collateral + PnL - fees) drops below 10% of the initial collateral size.

Liquidation Threshold Factor

The liquidation threshold factor is currently set to 10% for all pairs. This means that if the net PnL (PnL - fees) of your position is below -90%, the position is subject to being liquidated.

Liquidation Price

The liquidation price of a position may be changed over time as funding fee accumulate to the position's value.

$LiqPrice = EntryPrice \cdot (1 - \frac{CollateralSize \cdot LiquidationThresholdFactor - ExitFee - FundingFees}{PositionSize})$

where

• ExitFee is the amount of maker or taker fee that is proportional to the position size.

• FundingFees is the amount of cumulative funding fee of the position.