Liquidation

Liquidation on Pluto happens when your account equity (collateral) falls below the minimum margin required to maintain that open position.

The minimum margin required to maintain a position is determined by this formula: 1/max_leverage/2 per asset.

For example, BTC's max leverage is 40x so the minimum margin required is 1/40/2 or 1.25%. This means you need to maintain 1.25% of your open position size (in $). Let's say you put $1,000 and opened up a $40,000 BTC long, your initial margin is $1,000 (2.5% of $40,000), you need to maintain at least 1.25% of the position size in collateral to keep it open.