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
Section titled “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
Adding margin moves liquidation farther away once the addition activates.
A touch is enough
Section titled “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. If the position uses both claim collateral and cash, losses use the claim collateral first.