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HYPE

PERPS MARGIN & RISK

What your liquidation price really means

Why the exchange can close a position and why the threshold can move.

THE IDEA TO TAKE WITH YOU

Liquidation price is a risk threshold, not a suggested stop-loss level.

When margin is no longer enough

The exchange requires a minimum level of supporting equity called maintenance margin. If the applicable equity falls below that requirement, liquidation procedures can begin. The process can close positions automatically; you do not need to approve an order at that moment.

A highly leveraged position has less room for adverse movement relative to its exposure. A quiet market can become a fast one before you have time to act.

Read the right price

Hyperliquid uses a mark price for liquidation. The last trade shown on a chart is not necessarily that mark. A visible last price on one screen therefore cannot prove that a position is outside its liquidation threshold.

The position’s liquidation price can change as account conditions change. Funding, other cross-position PnL, and collateral adjustments can matter. Recheck it after a fill or balance change.

Manage before the threshold

Plan exits with room for execution uncertainty. Stop orders can slip or fail to fill under their constraints. Waiting for a liquidation boundary gives you less control over the outcome.

HYPE’s position liquidation figure describes the current position. It is not a guaranteed price for a new order that has not filled. Check the position again after execution rather than reusing an old estimate.

WORKED EXAMPLE

A moving threshold

A cross position may show a different liquidation price after another position loses value, even though you did not edit the first trade. Review the account as well as the individual chart.

Illustrative figures only. Not a price forecast or trade recommendation.

Further reading

Protocol details and market rules can change. Check the current specification before trading.

Educational content, not investment advice. Trading perpetuals can result in substantial loss. Market access is subject to eligibility and location. Product disclosures.