Lpotic
  • Introduction
  • Lpotic Trade
  • Lpotic Decentralized Oracle Network
    • Asset Classes
    • Trading Mechanics
    • Opening & Closing Positions
  • Slippage Mechanism & Liquidation Process
    • Liquidation Mechanism
    • Liquidation Residual Value
    • Fee Structure
    • Fee Allocation
  • lUSDT Vault
    • lUSDT Token
    • lUSDT Minting and Burning
  • $LPOTIC Tokenomics
    • $LPOTIC Allocation
    • Token Functionality
  • Lpotic DAO
  • Roadmap
  • Disclaimer
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  1. Slippage Mechanism & Liquidation Process

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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Last updated 1 year ago