Zaros Docs
  • šŸ Getting Started
    • What is Zaros?
    • Tree Proxy Pattern
    • Protocol Architecture
      • Zaros Core
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      • Perps Engine
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    • Roadmap
  • šŸ“šProducts
    • Perpetuals DEX
      • Introduction
      • Oracles and Keepers
      • Chains
      • Markets
      • Social Login and One-Click Transactions
      • Collaterals
      • Funding Rate
      • Liquidation
    • Earn (Re)Staking dApp
      • Introduction
      • Boosted (Re)Staking Vaults
      • Integrations
  • ā–¶ļøUsing Zaros
    • First Steps
      • Connecting your wallet in Zaros dapp
      • How to mint USDC & Create a Trading Account
        • Where to get Faucet
        • How to mint USDC
        • How to Create a Trading Account
    • For Traders
      • Profit and Loss (PNL)
      • Collateral/Leverage management
      • How to open & close a position?
        • Order Entry & Margin Overview
        • Market Buy/Long | Limit Sell/Short (Opening a position)
        • Take Profit/Stop Loss Triggers (Closing a position)
      • Margin & Leverage
      • Trading Data
        • Market Data
        • TradingView
        • Trading Activity Panel
        • Order entry & Margin Overview
    • For Liquidity Providers (LPs)
      • How to stake
      • How to unstake
  • šŸŖ™ZRS Token
    • Introduction to $ZRS
    • Tokenomics
      • $ZRS Supply & Emissions
      • LBP System
    • Phase 1 ZRS/ETH Incentives
    • veZRS
      • What is veZRS?
      • The ve80/20 System
    • Governance
      • Zaros DAO
      • gZRS
  • šŸ”µzPoints
    • Introduction
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  • ⛲Resources
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Liquidation

Liquidation Criteria

A user's position is subject to liquidation if their Account Value drops below the RequiredMaintenanceMargin. This process is vigilant, with Keepers tasked to continuously monitor positions against maintenance margin requirements. They utilize an eventTrigger mechanism to initiate liquidations, enhancing market stability.

isLiquidatable={requiredMM+liquidationFeeUsd≄marginBalanceUsdisLiquidatable = \begin{cases} \text{requiredMM} + \text{liquidationFeeUsd} \geq \text{marginBalanceUsd} \\ \end{cases}isLiquidatable={requiredMM+liquidationFeeUsd≄marginBalanceUsd​

Note: requiredMM stands for the requiredMaintenanceMargin

Liquidation Mechanics

The liquidation process leverages Chainlink oracle data feeds for accurate price referencing, ensuring liquidations are executed at the oracle's quoted price. This task is facilitated by LiquidationBranch.sol, which adheres to predetermined upper and lower price boundaries during the liquidation phase.

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Last updated 1 year ago

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