Liquidation

When a position is liquidatable

For an ordinary isolated v24 position in normal accounting, non-positive mass is unhealthy. A positive position is liquidatable when its canonical gross close value is strictly below the exposure-based maintenance requirement, rounded up. This is not the old v22 adjusted-worth-to-collateral ratio.

Oracle movements, funding liabilities, and changes in pool-level conversion can affect health. A displayed liquidation price is an estimate, not a guaranteed execution threshold.

Isolated liquidation

liquidateIsolatedV24 evaluates the position and its full-close settlement. The keeper must provide current checkpoint, price, deadline, risk, and minimum-bounty guards. Liquidation eligibility does not override oracle, phase, or settlement checks.

The remaining owner's collateral is normally reserved in settlement escrow after the applicable fee and bounty. Negative mass instead follows debt settlement. Recovery has a dedicated negative-mass settlement path that must meet minimum progress; a normal liquidation call is not a universal Recovery exit.

Bounty sources

v24 does not promise a universal 5% reward:

• Positive-value liquidation uses the target's remaining payout, subject to the configured rate and amount caps.
• Negative-value liquidation uses the position's separately funded bounty bond, subject to position, transaction, and Recovery-episode budgets where applicable.
• Self-liquidation identities cannot earn a bounty by naming themselves or a related account identity as the recipient.

A bounty may be paid directly or reserved in bounty escrow, subject to its payout mode. Owner settlement escrow, bounty escrow, Safety Reserve, and free account collateral are distinct balances.

Margin-account liquidation

Cross positions use account-level health and supported account liquidation routes. Ordinary liquidation requires complete, custody-backed reads with no Recovery pool, then signed equity below maintenance. Incomplete data and Recovery are separate states, not automatic normal-liquidation permission.

liquidateNext, liquidatePositions, and liquidateToTarget use guarded pages and track progress and session bounty budgets. Degraded liquidation can address an eligible readable target without assuming unreadable pools are healthy. A session ends only under the account's actual completion rules.

Rescue collateral has separate accounting and protection. Do not assume a deposit is all available for liquidation rewards or that one liquidation page restores initial margin. See Margin accounts.

Reduce your risk

Check current margin requirements and funding, keep sufficient collateral, and understand the payout and debt guards before trading. Recovery may restrict ordinary exits and delay claims even when you want to reduce risk.