Glossary
Liquidation price
The price at which your account equity falls to the maintenance margin and the position is closed by the exchange. It is a level where liquidation begins, not a guaranteed exit price.
Checked against the Hyperliquid documentation 8 Sept 2026 · how we check
Related terms
- Maintenance margin The minimum equity a position must retain. On Hyperliquid it is half the initial margin at the market's maximum leverage, so a 40x market requires 1.25% of notional.
- Initial margin The collateral a position requires when you open it: position size times mark price, divided by your chosen leverage.
- Backstop liquidation What happens when the order book cannot absorb a liquidating position and equity falls far enough: the position transfers to the liquidator vault, and the maintenance margin is not returned.