> For the complete documentation index, see [llms.txt](https://docs.ventuals.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ventuals.com/trading/liquidations.md).

# Liquidations

If a trade moves too far against you and you don’t have enough margin to support it, your position may be liquidated — meaning it gets force-closed to prevent losses from exceeding your available balance.

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## **When do liquidations happen?**

Every position has a minimum margin requirement, based on the leverage you use. The higher the leverage, the less margin is required — but the closer you are to liquidation.

Here’s how much margin you need to maintain:

* 1x leverage → minimum margin: 50%
* 2x leverage → minimum margin: 25%
* 3x leverage → minimum margin: 16.67%
* 5x leverage → minimum margin: 10%
* 10x leverage → minimum margin: 5%
* 20x leverage → minimum margin: 2.5%

If your account value (including unrealized PnL) falls below this level, Ventuals will automatically close your position at market. If there's any margin left after closing, it stays in your account.

## **How to avoid liquidation**

To lower your chances of being liquidated:

* Use lower leverage to give yourself more breathing room
* Set stop-losses to manage downside risk
* Monitor your liquidation price (shown in the UI)
* Add more margin when you're getting close

## **How liquidation price works**

When you open a trade, we calculate a liquidation price **—** the point at which your losses become too large to support your position. This price can move over time due to funding payments or changes in your other open trades.

Higher leverage = higher risk, because even small price moves can push you into liquidation territory. Trade accordingly.


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