> For the complete documentation index, see [llms.txt](https://docs.onlyperps.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.onlyperps.com/welcome-to-onlyperps/trading/liquidations.md). # Liquidations When you open a SEI long position with a size larger than your collateral value, there is a specific price at which your potential losses would nearly equal your collateral. This price is known as the Liquidation Price. It's calculated based on the point where (collateral - losses - fees) falls below a certain percentage—typically between 0.4% to 1%, depending on the market and pool settings—of your position size. If the token's price drops to this level, your position will be automatically closed. The calculation for whether a position is liquidatable is based on the oracle price and does not consider any negative or positive price impact. When the position is liquidated, any actual price impact is applied to finalize the closure. Because of borrowing and funding fees, your liquidation price isn't fixed. This is especially important to monitor if you use leverage greater than 10x and keep the position open for several days. You can deposit more collateral using the "Edit" button in the position row to improve your liquidation price and lower the risk of liquidation. If your position is liquidated, any remaining collateral, after deducting losses and fees, will be returned to your account. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.onlyperps.com/welcome-to-onlyperps/trading/liquidations.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.