> For the complete documentation index, see [llms.txt](https://docs.imperial.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.imperial.trade/trading/liquidation.md).

# Liquidation

A margin account is liquidated when its **equity falls below its maintenance margin**, measured at the mark price.

> Equity = collateral + unrealized PnL at mark − funding owed

### Isolated positions

* **Trigger:** equity below the position's maintenance margin (for example 0.20% of notional on BTC at the 250x tier).
* **What happens:** Imperial closes the hedge on the venue's order book, then closes your position on Solana.
* **Fee:** on markets with a leverage tier (almost all of them), the **remaining collateral is kept as the liquidation fee**. Your loss is limited to the collateral you put in that position.

### Cross accounts

* **Trigger:** equity below the account's total maintenance margin, which is the sum of each position's maintenance on its mark notional, reduced by [Portfolio Margin](https://docs.imperial.space/trading/portfolio-margin) for hedged accounts.
* **What happens:** **all** positions in the cross account are closed together. Cross liquidation is full, not partial.
* **Fee:** **1% of the total position notional** at the mark, capped at your remaining equity. **Whatever equity is left stays in your account.**

### Example (cross)

You hold a $50,000 BTC long on $2,500 of collateral (20x) with a maintenance rate of 1.2% ($600). Liquidation happens when equity falls below $600, after a loss of about $1,900, a BTC move of roughly 3.8%. The fee is 1% of the \~$48,100 mark notional, about $481, so about **$119** remains in your account.

*Illustrative figures. The trade screen shows your exact liquidation price.*

### Who liquidates

Imperial's keeper watches every account in real time and runs liquidations. Liquidation isn't permissionless: no third party can liquidate your position early or at a worse price.

### Bad debt

If a position loses more than its collateral before it can be closed, Imperial absorbs the shortfall. Your balance can't go negative, and other traders are never auto-deleveraged to cover it.

### Avoiding liquidation

* Use lower leverage or add collateral.
* Set a stop loss. It must sit before your liquidation price.
* On cross margin, remember that **closing one leg of a hedge can raise the margin on the rest**.
* TradFi markets can be liquidated while the underlying market is closed (see [Markets](https://docs.imperial.space/trading/markets)).
* Link Telegram to get approaching-liquidation alerts.