When it opens, liquidation automatically closes positions whose margin can no longer cover their maintenance margin.
- Isolated: when the position's margin plus its unrealized profit or loss falls to its maintenance margin or below, that position closes in full.
- Cross: when your cross equity, meaning the available balance of your Futures account plus the margin and unrealized profit or loss of your cross positions, falls to their combined maintenance margin or below, all cross positions close together.
Liquidation uses the financial mark and runs on FALKR's servers, and no trading fee is charged on it. A liquidated isolated position can't cost more than its margin, and a cross liquidation never takes your Futures account below zero: FALKR absorbs any shortfall.
The position card shows a Liquidation estimate. For cross positions it assumes the other positions' prices stay where they are (Other marks held fixed). It is an estimate, not a promise. To reduce the risk, use lower leverage, add isolated margin or close part of the position.