Liquidations
The bust price, when it triggers and what is lost.
Every position gets a bust price when it fills: the price at which its equity would reach zero, moved toward the entry by 0.05% of the entry price (SAMPLE). If any oracle second recorded after your fill reaches the bust price, the position is liquidated and the whole margin is lost.
| Leverage | Bust when price falls | A close just above it would return |
|---|---|---|
| 10x | 9.95% | 99.5% of margin |
| 100x | 0.95% | 95% of margin |
| 1000x | 0.05% | 50% of margin |
The 0.05% buffer is fixed in price terms, so at 1000x it gives up about half the margin compared with closing at the zero-equity price. At 10x it costs 0.5% of margin.
Rules that matter
- A close whose price at T is at or past the bust price settles as a liquidation.
- A position that is waiting for its close can still be liquidated by any second up to the close's price time.
- Liquidations are never paused, and our keeper runs a standby so they land on time.
- While the queue is empty, 2% of the margin is taken as a liquidation fee for stakers and the protocol. Positions funded from queued balance pay no liquidation fee.
- Liquidations accrue DRAFT on the full lost margin.