Liquidations

Liquidations protect the open Bankroll Liquidity Pool from accounts whose losses have reduced their collateral below the level required to support their open positions.

A liquidation is triggered when a trader's Margin Level falls below 100%.

$$Margin \; Level = \frac{Equity} {Margin \; Used}$$

When a liquidation is triggered, Crypta reduces or closes the trader's open position depending on the liquidation mode selected by the user.

Traders can choose between full liquidation or partial liquidation.

Full Liquidations

All of the trader's open positions are closed when their Margin Level falls below 100%.

Partial Liquidations

Reduces the size of the open position rather than closing it entirely. When Margin Level falls below 100%, the risk engine closes enough position quantity to restore the trader's Margin Level to 150% or greater.

$$Margin \; Level \ge 150\%$$