Liquidation

Calculating Liquidation Price

The liquidation price is the threshold at which a position is automatically closed to prevent further losses. Three inputs determine it:

• Maintenance margin — the minimum collateral a position must keep, equal to position size × (1 / max maintenance leverage). When collateral falls below this line, liquidation can trigger.

• Unsettled obligations — fees the position owes the pool (the close fee plus accrued margin fees). These reduce your effective collateral continuously, moving the liquidation price even without price action.

• Your collateral and entry — more collateral (lower leverage) puts the liquidation price further away.

Maintenance leverage is a per-pool protocol parameter (as of 2026-07-03; tunable):

Pool	Max maintenance leverage
Crypto Pool markets	1000x
Gold Pool — forex	2000x
Gold Pool — metals	200x
Gold Pool — oil, gas	50–100x
Defi Pool markets	100x
Meme, FART, Ore, Equity markets	50x

Watch the panel, not the math. Your live liquidation price shows in the order panel before you confirm and on every open position afterward. Higher leverage puts it closer to the current price.

The Liquidators

Keeper bots continuously monitor every position and liquidate promptly once a position exceeds its maintenance threshold, executing on Flash's low-latency execution layer.

Flash's margining engine does not require an insurance fund: the pool that backs each position is always the counterparty, so there is always liquidity to close against. Liquidation proceeds are another source of yield for liquidity providers — any remaining maintenance margin is not returned to the trader.