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.