Liquidation

What triggers it

Opening a position requires initial margin. Keeping it open requires maintenance margin — a lower floor. As the position moves against you, unrealised loss is deducted from the margin backing it. When what remains falls to the maintenance level, the liquidation engine closes the position so the account does not go negative.

Leverage sets the distance to that point. The higher the leverage, the less price movement stands between the entry and the liquidation price, because the same move is a larger fraction of a smaller margin.

• Know the liquidation price before the order is placed, not after.
• Adding margin moves the liquidation price away; adding size moves it closer.
• A liquidation is a market close-out, so slippage is charged to you, not to the venue.

The case people miss

A perpetual market runs continuously, and margin stays live the whole time. On an equity perpetual that matters more than anywhere else: the underlying exchange is closed for more hours of the year than it is open, and the contract keeps trading through all of them.

So a position can be liquidated on a Saturday, at a price the share's own exchange never printed, with no way to hedge in the underlying because the underlying is shut. Size a position that will sit through a closed period against a far wider move than a weekday session would produce.

Distance to liquidation on BRVX

BRVX closes a position when the price loss plus the opening and closing fee reach 80% of its margin. On BTC/USDT, with an opening fee of 0.1%, that puts liquidation about 7.81% away from entry at 10x, 1.4% at 50x and 0.33% at 150x.

Stock perpetuals on BRVX trade 24/7, so the same distances apply at night and at weekends.