> ## Documentation Index
> Fetch the complete documentation index at: https://dexbuilder.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Liquidation

Liquidation can be triggered when available margin is no longer sufficient to maintain an open position.

## Trigger conditions

### Isolated margin

Each position is evaluated independently. If the position margin ratio reaches the liquidation threshold, that position can be liquidated.

### Cross margin

Cross-margin positions share eligible account balance. Unrealized PnL is included in the shared margin calculation. Liquidation can be triggered when the account margin ratio reaches the threshold.

## Liquidation process

1. The liquidation condition is triggered.
2. Open orders may be cancelled.
3. Position exposure is reduced according to the applicable position tier and maintenance requirement.
4. The account is recalculated after each reduction.
5. The process stops once the margin condition recovers or the relevant position has been fully closed.

Liquidation orders are processed using the platform's liquidation pricing and insurance-fund rules.


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