Why Was I Liquidated?
Understanding Liquidation
Liquidation occurs when your position’s margin falls below the maintenance margin requirement. The GX Core liquidation engine automatically closes your position to prevent further losses and protect the insurance fund.
How Liquidation Works
- Mark price moves against your position
- Unrealized loss reduces your account equity
- When margin ratio reaches 100% (maintenance margin / equity), liquidation triggers
- The liquidation engine closes your position at the current market price
- A liquidation fee is deducted and added to the insurance fund
Common Causes
| Cause | Explanation |
|---|---|
| High leverage | Higher leverage means less room for adverse price movement before liquidation |
| Volatile market | Sudden price moves can push positions past the liquidation threshold |
| Underfunded margin | Not maintaining adequate free margin for open positions |
| Funding rate | Accumulated negative funding can erode margin over time |
| Correlated positions | Multiple positions on correlated assets amplify losses in cross-margin mode |
How to Avoid Liquidation
- Use lower leverage — Lower leverage provides more room for price movement
- Set stop-losses — Close positions before they reach the liquidation price
- Monitor margin ratio — Keep margin ratio well below 100%
- Add margin — Deposit additional USDC to increase your account equity
- Reduce position size — Smaller positions require less margin
- Diversify — Avoid concentrating in a single direction on correlated assets
Where can I see my liquidation price?
Your liquidation price for each position is displayed on the Trading page next to the position details. The liquidation price updates in real-time as your margin and PnL change.
Can liquidation be reversed?
No. Liquidations are final and executed at the protocol level. They cannot be reversed or appealed. The insurance fund backstops any socialized losses.