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

# Liquidation

Liquidation, also known as forced closure, is a protective mechanism triggered when the value of a user's position in a particular currency falls below the minimum maintenance margin.**Basic Fields and Their Meanings**

| Name                    | Meanings                                                                                                                                                                                                                                                      |
| ----------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Maintenance Margin      | In an account's particular currency assets, this is the amount of margin for the current perpetual contract positions. There is generally a minimum requirement for the maintenance margin. If it falls below this minimum, it triggers a forced liquidation. |
| <p>Margin Ratio<br></p> | Margin Ratio = (Initial Margin + Unrealized Profit/Loss in the Position) / (Maintenance Margin Required for the Position Size + Liquidation Fees). The platform's current minimum margin ratio is 0.50%.                                                      |

1. Minimum Maintenance Margin = Position Size \* Mark Price \* Maintenance Margin Ratio + Estimated Liquidation Fees.
2. The typical maintenance margin ratio is usually around 0.50%.
3. After liquidation of a specific currency, the balance in the user's Exchange Wallet and other positions will not be affected.

**Case**

| Trading Pair           | BTC/USD   |
| ---------------------- | --------- |
| Long/Short             | Long      |
| Margin（$）              | 1,000.00  |
| Entry Price （$）        | 42,704.00 |
| Leverage               | 5.00 x    |
| Size                   | 0.117     |
| Mark Price（$）          | 41382.19  |
| MaintenanceMarginRatio | 0.50%     |
| TradingFeeRate         | 0.08%     |
| Est. Liq. Price（$）     | 34,356.26 |

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