Liquidation
A position is liquidated when its loss reaches 90% of its margin. It closes at the mark, and you can never lose more than the margin you put in.
The formula
With entry price E and leverage L, a 90% loss of margin is a price move of 90% ÷ L:
- Long: liquidation = E × (1 − 0.9 ÷ L)
- Short: liquidation = E × (1 + 0.9 ÷ L)
The liquidation price is shown on every position and as a dashed line on the chart. It is fixed when you open and moves only when you add to the position.
How far each leverage can move
| Leverage | Position size | Move to liquidation | Long liquidates at | Short liquidates at | Loss at the line |
|---|---|---|---|---|---|
| 1× | $100 | 90.0% | $0.1000 | $1.9000 | −$90 |
| 5× | $500 | 18.0% | $0.8200 | $1.1800 | −$90 |
| 25× | $2,500 | 3.6% | $0.9640 | $1.0360 | −$90 |
| 100× | $10,000 | 0.90% | $0.9910 | $1.0090 | −$90 |
At 100×, the line is 0.90% away: on a coin that moves several percent a minute, that is a very short trade.
When it triggers
Positions are checked on every fresh mark, about every 2 seconds. A position whose mark is at or past its liquidation price is closed at that mark.
Liquidations only happen on fresh prices: a stale market liquidates nobody until a real price arrives.
Gaps: the loss is your margin, never more
Memecoin prices jump. If the next fresh price is already far past your line, the position closes at that price, but the loss is capped at the position's margin: you lose exactly the margin, and nothing else in your account is touched. Isolated margin means one blown position can't take the others with it.
Staying away from the line
- Lower leverage moves the line further away.
- Adding margin to the position (same side, same leverage) moves the average entry, not the leverage.
- Reducing the position doesn't move the line, but it shrinks what is at risk.