Liquidation

On Strike, you get liquidated when your remaining collateral falls below the maintenance margin requirement as a percentage of your total position value.

Important: When you get liquidated, you don't get any funds back - your entire initial collateral is forfeited. This means you lose both your unrealized losses from the position's negative performance and your entire original collateral deposit.

Position Example: ADA Liquidation

Position Details:

  • Underlying Asset: ADA

  • Position Size: 5,050 ADA

  • Entry Price: $0.5214

  • Current Price: $0.5502

  • Initial Collateral: $275

  • Total Position Value: 5,050 ADA × $0.5502 = $2,778.60

Liquidation Calculation:

  1. Position P&L: 5,050 ADA × ($0.5214 - $0.5502) = -$145.44

  2. Remaining Collateral: $275 - $145.44 = $129.56

  3. Margin Ratio: $129.56 ÷ $2,778.60 = 0.0467 = 4.67%

  4. Result: 4.67% < 5% Maintenance Margin Requirement → LIQUIDATION TRIGGERED

Outcome: Position closed immediately, $0 returned to trader (total loss of $275 initial collateral).

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