Liquidations

If a trade moves significantly against your position and your available margin becomes insufficient to maintain it, the position may be liquidated — that is, automatically closed to ensure that losses

A liquidation event occurs when a trader’s positions move sufficiently against them that their account equity falls below the required maintenance margin. The maintenance margin is defined as half of the initial margin at maximum leverage.

Here’s how much margin you need to maintain:

• 3x max leverage → minimum margin: 16.67%

• 5x leverage → minimum margin: 10%

• 10x leverage → minimum margin: 5%

If your account value (including unrealized PnL) falls below this threshold, Perps⁻¹ will automatically close your position at market. Any remaining margin after the position is closed will be retained in your account.

When account equity drops below the maintenance margin threshold, the system attempts to close the trader’s positions by submitting market orders to the order book for the full notional size of each position. These orders may be fully or partially filled. If, after this process, the positions are fully or partially closed such that the account once again satisfies the maintenance margin requirements, any remaining collateral is retained by the trader.