Trading
Liquidation
Every position has a liquidation price: the price at which its whole collateral is gone. When the price on screen reaches it, the position closes.
The liquidation price
long: liquidation price = entry × (1 − 1 / leverage) short: liquidation price = entry × (1 + 1 / leverage)
| Leverage | Move against you that liquidates | Long entered at $1.00 | Short entered at $1.00 |
|---|---|---|---|
| 2× | 50% | $0.50 | $1.50 |
| 3× | 33.3% | $0.667 | $1.333 |
| 5× | 20% | $0.80 | $1.20 |
| 10× | 10% | $0.90 | $1.10 |
A 1× long has no liquidation price: the token would have to reach zero.
When it happens
Tausen checks every new price (every finished slot) against the open positions of that market. As soon as the price on screen reaches a position’s liquidation price, the position closes at that price. It is the same price you see and trade at: if the chart touches your liquidation price, even for one slot, the position is liquidated.
When a market’s price is frozen, liquidations wait too, and resume with the first live price.
What you lose
The whole collateral. 1% of it is kept as the loss fee; the other 99% goes into the token’s payout pool. Nothing more is taken from your balance: a position can never lose more than its collateral.