> For the complete documentation index, see [llms.txt](https://docs.getrekt.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.getrekt.trade/liquidations.md). # liquidations GetRekt uses isolated margin and a hard-bust liquidation model. Once a position is validly liquidated, it loses its entire margin. The maintenance portion is not returned. ## The threshold The Sui design uses maintenance as a fraction of margin. With entry price E, leverage L, and maintenance fraction m: ``` long threshold = E × (1 − (1 − m) / L) short threshold = E × (1 + (1 − m) / L) ``` At the current reference maintenance setting of 10%, a 2000× position reaches the threshold after an adverse 0.045% move, or 4.5 basis points. Its zero-equity distance is 0.05%, or 5 basis points. These are model distances, not a guarantee of execution at an exact price. For example, a 2000× long entered at 100,000 has a model threshold of 99,955. A voluntary close and a liquidation are different settlement paths: liquidation forfeits the full margin. ## Price uncertainty matters The oracle must be fresh and valid. The liquidation check must establish that even the favorable end of the permitted uncertainty interval is beyond the threshold. A midpoint crossing alone is insufficient. High leverage is especially sensitive to update delay, confidence intervals, and the difference between Lighter and the independent reference. Invalid or stale data can prevent liquidation and other operations until valid data arrives. Keepers and RPC availability are part of operational readiness. ## Rewards and referrals A cash liquidation counts the full lost margin as gross eligible loss. It earns $REKT and, with a valid referrer, uses the 2%-then-30/70 allocation. A debt liquidation also earns $REKT and advances the same loss counter, but creates no USDC referral reward. {% hint style="warning" %} The product ceiling is being changed to 2000× in the specification; current code still permits up to 2100×. These figures must be synchronized before deployment. [Implementation status](broken://pages/c7eabe8af8c3f2ae7c1c1dce69dad717e5d1ac7a). {% endhint %} --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.getrekt.trade/liquidations.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.