# Liquidations

Satori implements the mark price to mitigate the risk of liquidations resulting from low liquidity or market manipulation. A position is liquidated when the margin balance falls to the maintenance margin level. 

**Calculation Formula:**

\- Liquidation Price (Long):

*Liquidation Price = Average Entry Price \* (1 + Maintenance Margin Fraction) - (Position Margin Balance / Size of Contracts)*

\- Liquidation Price (Short):

*Liquidation Price = Average Entry Price \* (1 - Maintenance Margin Fraction) + (Position Margin Balance / Number of Contracts)* 

\- Perpetual Margin Level:

*Perpetual Margin Level = (Position Maintenance Margin / Position Margin Balance) \* 100%* 

**Isolated Margin Liquidation**

In isolated margin mode, liquidation impacts only the margin and funding fees associated with the specific position. Other positions remain unaffected. 

**Cross Margin Liquidation**

In cross margin mode, liquidation results in the loss of all collateral, funding fees for full-margin positions, frozen order margins, and the entire available balance. 

When liquidation occurs at the bankruptcy price, the following scenarios may arise: 

* If the position is liquidated at a price better than the bankruptcy price, the excess funds will be added to the insurance vault.
* If the position cannot be liquidated at a price better than the bankruptcy price, the deficit will be covered by the insurance fund. If the insurance fund is insufficient, the liquidation position will be managed by the Automatic Deleveraging System (ADL). 


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