Closing Trades
Manual close, automated TP/SL triggers, partial closes, and liquidation mechanics.
Manual Close
Close your full position or a portion of it at the current oracle price. Partial closes are only available through manual closing; automated triggers always close the full position.
PnL is realized, the closing fee is deducted from your remaining collateral, and the rest returns to your wallet. Confirm the transaction like any other on-chain action.
Partial closes let you take profit while keeping exposure. Close 50% of a winning BTCDOM long, lock in those gains, and let the other half ride. The closed portion settles immediately. The remaining position keeps its original entry price with an adjusted size.
You opened a 50x long on BTCDOM with $1,000 collateral. Position size: $50,000. BTCDOM moved 2% in your favor — your unrealized PnL is +$1,000.
You close 50% of the position. The closed half settles: $500 collateral + $500 profit - closing fee ($12.50 at taker rate) = $987.50 returned to your wallet.
Your remaining position: $500 collateral, $25,000 position size, same 50x leverage, same entry price. The realized $987.50 is safely in your wallet. The remaining half continues to ride.
Automated Close (TP/SL)
When the index hits your take-profit or stop-loss target, the protocol closes your full position automatically. Collateral minus the closing fee returns to your wallet. No action needed on your end.
Set these triggers at open or add them later through position management. A well-placed SL protects against catastrophic drawdowns while you're away from the screen.
Liquidation
Liquidation fires when your position's value drops to or below the liquidation margin — a reserve calculated from your collateral and leverage.
Liquidation Margin
At max leverage (250x), the liquidation margin is 25% of your collateral. At lower leverage, it scales down proportionally.
| Leverage | Liquidation Margin (% of collateral) | $1,000 collateral |
|---|---|---|
| 250x | 25% | $250 |
| 100x | 10% | $100 |
| 50x | 5% | $50 |
| 10x | 1% | $10 |
When Liquidation Triggers
Your position is liquidated when:
Accrued funding fees eat into your buffer. A position paying funding on the majority side drifts toward liquidation even without price movement.
What Happens to Your Collateral
Liquidation means total loss of collateral. The trader receives nothing.
On liquidation, your collateral is split:
- Liquidation margin goes to vault LPs as a reward
- Remaining collateral is absorbed by the vault
- You receive zero
No closing fee is charged on liquidations — there's nothing to charge it against.
Worked Example
You open a 100x long on BTCDOM with $1,000 collateral. Position size: $100,000.
- Liquidation margin: $1,000 x (25% x 100 / 250) = $100
- You're liquidated when your position value drops to $100
- That means a price move of approximately 0.9% against you triggers liquidation (accounting for the margin buffer)
With accrued funding of $50 over your holding period, you'd be liquidated at only a 0.85% adverse move.
Try these numbers in the calculator above — set collateral to $1,000 and leverage to 100x to see the liquidation margin and price move threshold in real time.
Defenses Against Liquidation
- Use conservative leverage. Lower leverage = larger buffer before liquidation.
- Set stop losses. An SL closes you out before liquidation hits.
- Add collateral. Depositing more USDC via Position Management pushes your liquidation price further away.
- Monitor funding. If you're on the majority side, funding costs compress your margin over time.
Closing Fees
Closing fees follow the same maker/taker logic as opening fees. The fee is calculated against your position's notional value at close.
For the full breakdown of maker vs. taker classification, rates, and worked examples, see Fees.