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

# 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                      |

{% hint style="info" %}
**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.
{% endhint %}

#### 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.


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