Liquidation Process
Astros utilizes Mark Price to minimize liquidation risks due to market manipulation or low liquidity. Liquidation occurs when the margin balance of a position reaches or falls below the maintenance margin threshold.
Liquidation Price Calculations
The liquidation price is calculated differently based on the direction of the position:
For Long Positions:
For Short Positions:
Perpetual Margin Level Calculation
To assess the current margin health of a perpetual contract position, Astros computes the margin level as follows:
A margin level approaching or falling below 100% indicates an imminent liquidation risk.
Astros
Margin Modes and Liquidation Impact
Astros provides two distinct margin modes, each with different liquidation implications:
1. Isolated Margin Mode
In isolated margin mode, liquidation risk and consequences are confined strictly to the margin and funding fees associated with the particular position being liquidated. Other positions and balances remain unaffected.
2. Cross Margin Mode
In cross margin mode, liquidation impacts are broader. When liquidation occurs, the trader risks losing:
All collateral allocated.
Accrued funding fees associated with open positions.
Margins reserved for active orders (frozen margin).
The entirety of the available account balance.
Liquidation Outcomes at Bankruptcy Price
During liquidation at the Bankruptcy Price, two possible outcomes emerge:
Surplus Scenario: If liquidation occurs at a price more favorable than the bankruptcy price, excess collateral is automatically transferred into the Insurance Fund.
Deficit Scenario: If liquidation cannot be executed above the bankruptcy price, the resulting deficit is first covered by the Insurance Fund. However, if the Insurance Fund balance is insufficient to cover this deficit, the liquidation is further managed through the Automatic Deleveraging (ADL) mechanism, which systematically reduces other positions to restore financial stability.
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