# Liquidations

Source: https://docs.mog.xyz/trading/liquidations/

Markdown: https://docs.mog.xyz/trading/liquidations.md

Reviewed protocol version: 6.0.1

Protocol review date: 2026-09-18

Scope: reviewed public documentation. Numerical examples use illustrative or launch settings; they are not live quotes or a guarantee of current deployed parameters. Consult the app for current market and position values.

Liquidation closes your position when the oracle price reaches its liquidation price. You lose the margin committed to that position, including any added margin that has activated.

## More leverage, less room

Higher leverage brings liquidation closer to your entry price. Longs liquidate below entry; shorts liquidate above it.

Higher leverage, nearer liquidation

Initial liquidation distance falls from 1 percent at 100 times leverage to 0.1 percent at 1,000 times leverage.

Illustrative entry liquidation distance: `distance (%) = 100 / leverage`. This is the initial distance before price rounding, not a current position liquidation calculation after margin changes.

| Entry leverage | Distance from entry |
| -------------- | ------------------- |
| 100×           | 1%                  |
| 500×           | 0.2%                |
| 1000×          | 0.1%                |

Entry distances before price rounding. Follow the liquidation price shown on your position.

[Adding margin](https://docs.mog.xyz/trading/adding-margin/) moves liquidation farther away once the addition activates.

## A touch is enough

Mog checks the price path recorded by the oracle. A touch of your liquidation price closes the position, even if the price later recovers. That touch takes priority over a pending close or margin addition.

Realized losses earn [MOG rewards](https://docs.mog.xyz/mog/earning-mog/). If the position uses both claim collateral and cash, losses use the claim collateral first.