Margin ratio
Last updated
Last updated
Liquidations on Palmswap Protocol are determined based on the margin ratio of your position. If you are using 10x leverage your initial margin ratio will be 10%, if the margin ratio drops to 6.25% or below a partial liquidation will be initiated. If your margin ratio falls to 2.5% or below, your position will be liquidated completely.
The margin ratio is calculated by adding your margin size and your PnL for a given position and then dividing by the nominal value of the position (position size multiplied by the market price).