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How Liquidation Works

We liquidate your position when your health drops to 45%. Health measures how much equity you have left relative to your margin: 
Health = (Position Value - Borrowed Amount) / Margin × 100%
When you open a position, health starts at 100%. As the market moves against you, health decreases. At 45%, we close your position.

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What Happens When You’re Liquidated

1

Position Sold

We sell your shares on Polymarket immediately
2

Vault Recovery

The vault recovers its borrowed capital
3

Margin Lost

You lose your remaining margin (no refund on liquidation)
Liquidation is final. There’s no partial liquidation or margin call. Once you hit 45% health, the position closes entirely.

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Avoiding Liquidation

Use Lower Leverage

5x gives you roughly twice the buffer before liquidation compared to 10x.

Watch Your Health

The dashboard shows real-time health for all positions.

Close Manually

If a trade isn’t working, exit before liquidation locks in the maximum loss.
At 10x leverage, a ~5.5% move against you triggers liquidation. Prediction markets can move 5% in minutes on breaking news. High leverage requires active monitoring.