Liquidation Price
The asset price at which a borrowing position becomes eligible for liquidation.
The asset price at which a borrowing position becomes eligible for liquidation.
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Sep 2026 · Показатель свежести: 50%
Что такое Liquidation Price?
The asset price at which a borrowing position becomes eligible for liquidation.
- Category
- concept
- Type
- Authority Node
- Источники
- 1
The liquidation price is derived from the position's collateral, debt, and the protocol's liquidation threshold. When the mark price crosses it, liquidators can close the position, often at a discount to the borrower. It moves with debt acc
Knowing the liquidation price is essential risk management — hitting it means losing collateral (and paying liquidation fees). Liquidations can cascade in volatile markets, amplifying price moves. Understanding it helps traders size positio
Граф знаний
24 relations1. What Is a Liquidation Price
The liquidation price is the asset price at which a leveraged position becomes eligible for automatic liquidation because its collateral ratio falls below the protocol's threshold. It is the risk line every leveraged trader must track.
2. How It Works
The liquidation price is derived from the position's collateral, debt, and the protocol's liquidation threshold. When the mark price crosses it, liquidators can close the position, often at a discount to the borrower. It moves with debt accrual and collateral changes. Platforms display it so traders can manage risk or add collateral.
3. Why It Matters
Knowing the liquidation price is essential risk management — hitting it means losing collateral (and paying liquidation fees). Liquidations can cascade in volatile markets, amplifying price moves. Understanding it helps traders size positions and set stop-losses above the liquidation line.
4. Key Facts
- Leverage determines distance to liquidation (higher leverage = closer)
- Liquidation bonuses typically 5-10%
- Depeg or oracle spikes can trigger liquidations unexpectedly
- Cross vs isolated margin changes liquidation scope
5. Related Concepts
- auto-liquidation
- collateral-ratio
- interest-rate-model
- price-impact
Frequently Asked Questions
What is Liquidation Price?
The asset price at which a borrowing position becomes eligible for liquidation.
How does Liquidation Price work?
The liquidation price is the asset price at which a leveraged position becomes eligible for automatic liquidation because its collateral ratio falls below the protocol's threshold. It is the risk line every leveraged trader must track. The liquidation price is derived from the position's collateral
Why does Liquidation Price matter in Web3?
- collateral-ratio - interest-rate-model - price-impact