💦Liquidations

How do liquidations work?

Liquidations on orders that have exceeded their margin can be triggered using transactions by anyone. You can use the GUI to interact with the smart contract. In the orders tab, you will see orders which can be liquidated. There, you can click “auto close” and the order will liquidate.

What happens if your order is liquidated?

Liquidation is force-closing an order that has exceeded its margins and collateral.

A position can be liquidated if the swapped amount and collateral minus current liquidation bonus cannot be converted back to pay for the owed amount from the pool (and fees) times a 10% of margin of safety. This means that a position can be liquidated if: (Swapped amount + collateral) - liquidation bonus <= 1.1 * (owed from pool + fees) Note: values are converted to BUSD/USDC.

How do I liquidate an order?

Go to the Positions tab and orders that can be liquidated will appear. Press AUTO CLOSE on the order. If two or more users AUTO CLOSE the same order simultaneously, the one whose TX arrives first gets the liquidation reward of 0.09 WBNB/WMATIC (or whatever the liquidation fee is at the time, dynamic based on network conditions).

How are liquidations handled?

When margin trades go over their SL/TP or below liquidation price, any other user or user-made bot can liquidate that order and earn a liquidation bonus in WBNB/WMATIC.

What is the liquidation bonus?

Manually liquidate or auto-close other traders when they go over their margins, and you will earn bonuses in WBNB/WMATIC.