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Liquidation

Liquidation is a mechanism that automatically closes a position when the trader's collateral is insufficient to maintain the position. On Jupiter Perps, keepers monitor the liquidation price and automatically close positions when the price falls below the liquidation price.

If you face any issues, please reach out to us on Discord.

Long​

Liquidation for long positions occurs when the current token price falls below the liquidation price.

For example, if the liquidation price is $90, the long position will be closed if the token's price drops to $90 or lower.

Short​

Liquidation for short positions occurs when the current token price rises above the liquidation price.

For example, if the liquidation price is $110, the short position will be closed if the token price rises to $110 or higher.

Calculating Liquidation Price​

The liquidation price can be calculated with the following formula.

  • price: The average price (USD) of the position
  • collateral_size: The collateral size (USD) for the position
  • close_fee: The fee (USD) charged for closing the position
  • borrow_fee: The accumulated borrowing fees (USD) for maintaining a leveraged position
  • size: The size (USD) of the position
  • max_lev: The maximum allowed leverage (500x is the maximum allowed leverage in the Jupiter Perpetuals exchange for now)

For long positions

For short positions

info

It's crucial to note that the liquidation price is subject to change over time, particularly with leverage exceeding 10x and the accumulation of borrow fees over extended position durations. Regularly monitoring your liquidation price is essential.

To mitigate the risk of liquidation, collateral adjustments and leverage fine-tuning can be performed through the Edit button in the position row, offering an avenue to add collateral and enhance the liquidation price.