Liquidation Mechanism
Lpotic Trade employs a robust liquidation mechanism to maintain the integrity of the trading system and protect both traders and the platform.
Liquidation Price Calculation: Liquidation Price Distance = Open Price * (Collateral * 0.9 - Rollover Fees - Borrowing Fees) / Collateral / Leverage. The liquidation price varies depending on whether the position is long or short.
Forced Liquidation: A liquidation line is set at 90%. When the price of an asset reaches the liquidation price, triggering a loss of more than 90% of the collateral, the position is forcibly closed by the platform's liquidation bot.
Liquidation Bot Function: The liquidation bot automatically fetches real-time quotes and executes liquidation orders. The residual value after liquidation is then allocated to the vault.
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