🔔Liquidation Price

Liquidation Price is the asset price at which a trader's position is automatically closed (liquidated) by the trading platform.

When a trader opens a position using Leverage, they essentially borrow funds to increase the size of their trade. If the market price moves against the trader's position and reaches a certain critical level – the Liquidation Price – the trader loses their initial Margin (the trader’s personal funds before any Leverage is applied), and the position is closed to prevent further losses.

The Liquidation Price depends on the Position Size (Margin + Leverage).

It is calculated in a way that ensures that the trader has enough funds left to cover the losses from the trade. Understanding and considering the Liquidation Price is important in leveraged trading, as it can pose a serious risk.

Alpha Release Liquidation Price Ratio

In the Alpha phase of HunteX, the Liquidation Price Ratio for positions is set at 70% as part of our risk management strategy.

This precautionary measure is in place to manage the inherent risks associated with the early stages of the platform's development.

As liquidity increases and the platform gains increasingly more stability and financial strength, the Liquidation Price Ratio is expected to gradually adjust toward 100%.