> For the complete documentation index, see [llms.txt](https://references.everstrike.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://references.everstrike.io/trading/liquidation.md).

# Liquidation

Everstrike liquidates positions incrementally rather than closing them immediately. Each order reduces one position at a time. Liquidation stops when your margin again meets the maintenance requirement.

Read [Margin Requirements](/trading/margin-requirements.md) for the applicable minimum margins.

### When liquidation starts

Liquidation starts when Gross Position Margin falls below the Minimum Maintenance Margin requirement.

* With **Cross Margin**, the system evaluates your account-wide margin.
* With **Isolated Margin**, the system evaluates each position separately.

### How liquidation works

1. The system temporarily controls a position selected for liquidation.
2. It assesses whether market conditions support an acceptable close-out price.
3. It submits an Immediate Or Cancel (IOC) order if they do.
4. A filled order reduces the position and its maintenance requirement.
5. The system returns control when margin meets the requirement.

If margin remains below the requirement, the system can repeat this process.

#### Liquidation order size

Each order uses the following notional value:

`Order Notional (USD) = Min(Position Size (USD), Max(0.10 × Position Size (USD), 1,000 USD))`

The order is at least 10% of the position's USD notional. It is at least `1,000 USD` when possible. It never exceeds the remaining position value.

### During liquidation

The trading interface shows a warning beside a position in liquidation. While the warning appears, you cannot submit or cancel orders for that position.

You can add margin while liquidation is active:

* With **Cross Margin**, deposit additional assets into your trading account.
* With **Isolated Margin**, add margin to the affected position. Drag the leverage slider left.

Adding margin can return the position to compliance. You cannot increase leverage while liquidation is active.

When the position exits liquidation, the warning disappears. You can submit new orders after one minute. Liquidation orders appear in your orders overview in real time.

### Market conditions and liquidation failure

The system considers market depth, estimated average fill price, and recent executions. It submits an order only when these conditions support the close-out.

Extreme price movements or insufficient liquidity can prevent liquidation from completing. In that case, the position can transfer to a [Liquidity Provider](/trading/liquidity-providers.md). Learn how Everstrike handles the resulting risk in [Deleverage Events](/trading/deleverage-events.md).