# 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://lpotics-organization.gitbook.io/lpotic/slippage-mechanism-and-liquidation-process/liquidation-mechanism.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.