Liquidations

Every open position has a Bust Price. Reaching that threshold can end the position through liquidation and consume all of its isolated margin.

Why bust price matters

The threshold sits slightly before the price at which a simple adverse move would use the entire margin. The current buffer is 5 basis points, or about 0.05% of the entry price. This setting can change without advance notice for new positions. For example, a $100 long at 100× would use its margin after roughly a 1% decline; with the current buffer, its bust price is around $99.05. The ticket shows the actual value for the proposed position.

At higher leverage, a smaller price move reaches the threshold. The displayed bust price is a hard trigger, not an estimate of what you would receive from a voluntary close at that same price. If the accepted market price has already breached the trigger, submitting a normal close does not avoid liquidation treatment.

What you lose and what remains

A liquidation forfeits the whole margin assigned to that position. Other positions have separate margin, but your remaining trading balance can still be affected by other orders you open. The full liquidated margin counts as the basis for CARDBOARD emissions. CARDBOARD is not USDC and does not restore the lost margin.

The exchange monitors positions and submits liquidations when they cross their thresholds. Network processing and quote updates can affect timing. Watch each position's bust price and avoid treating the live PnL display as a guarantee that a close will execute first.