Liquidations

Satori uses mark price to avoid liquidation caused by low liquidity or market manipulation.When the position margin balance decreases to the maintenance margin, the position is liquidated.

Calculation formula:

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

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

Perpetual Margin Level =Position Maintenance Margin/Position Margin Balance*100%

Isolated Perps liquidation:

In isolated margin mode, liquidation will only result in the loss of the margin and funding fees associated with the individual position, without affecting other positions.

Cross Perps liquidation:

In full margin mode, liquidation will result in the loss of all full-margin collateral, all full-margin position funding fees, all frozen order margin, and the all available balance.

When liquidation is executed at the bankruptcy price, the following scenarios may occur:

• If the position is liquidated at a price better than the bankruptcy price, then the funds will be added to the insurance vault.

• If the position cannot be executed at a price better than the bankruptcy price, the deficit will be covered by the insurance fund. Finally, if the insurance fund is insufficient to cover the deficit, the liquidation position will be taken over by the automatic deleveraging system and go through the automatic deleveraging process.