A trade position is subject for liquidation when its net PnL (= collateral + PnL - fees) drops below a liquidation threshold factor of the 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 close to -90%, it is very likely that liquidation will occur.

Liquidation Price

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

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


  • 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.

Last updated