> Treat every fee rate, margin ratio, order limit, minimum and address in this documentation as an illustration of the shape of the value, never as a constant to hardcode - the live values are served by GET /markets and GET /config on the Perps API.

# Liquidations & Insurance Fund

> When liquidation triggers, what happens to your position, and how the Insurance Fund protects the system.

## When liquidation triggers

Each position (isolated margin) must maintain equity above its **maintenance margin** — a fixed percentage of position value per market: **1.5%** on BTC, **2.4%** on ETH, **6%** on HYPE (see [Markets & Trading Rules](/perps/markets#margin-requirements)). Equity is measured against Hyperliquid's **mark price**, the same price shown in the app.

The estimated liquidation price is displayed:

* in the trade panel **before** you place an order, and
* in the **Liq. price** column of your positions table, live, as margin and PnL change.

> **Tip**
>
> You can push your liquidation price away at any time by [adding margin](/perps/orders-and-margin#margin) to a position or reducing its size.

## What happens during liquidation

### The market is frozen for your account

The freeze applies to your account only: new orders in the affected market are blocked and your resting orders in that market — including TP/SL and reduce-only orders — are cancelled. Your positions and orders in other markets, and all other traders, are unaffected. The reverse also holds: another trader's liquidation never cancels your orders or touches your margin.

### The position is transferred

The position and its remaining margin are taken over by the Insurance Fund at the **bankruptcy price** (the price at which the position's margin is exactly exhausted). Because the trigger fires before margin is fully exhausted, the margin remaining at that moment goes to the Insurance Fund — it is, in effect, the liquidation penalty.

### The account is settled

You lose the margin posted to the liquidated position — never more. Accounts cannot go negative on HyperFlow, and other positions and your free balance are untouched (isolated margin).

HyperFlow's liquidation engine triggers **slightly earlier than Hyperliquid's native engine** would — on BTC at 1.5% of position value against the venue's 1.25%. The published maintenance rate is what applies to your position; it is the same number shown in the app and returned by `GET /markets`. The margin between the two exists so that a position is always unwound by HyperFlow's own engine, on its published rules, rather than by a venue-side forced close.

> **Note**
>
> If the price feed is interrupted, liquidations **pause** rather than execute against stale prices. The engine resumes only with fresh mark data.

## The Insurance Fund

The Insurance Fund is the system's shock absorber:

* It **absorbs the gap** when a position is closed worse than its bankruptcy price (e.g. in a violent move), so one trader's bankruptcy never socializes losses to other traders.
* It is **funded by the platform**, including margin recovered from liquidations.
* If the fund were ever depleted, the platform responds in escalating tiers — warnings, then blocking new position openings, then freezing withdrawals — rather than allowing an insolvent state to grow silently.

## Managing your risk

* Watch the **margin ratio** and liquidation price on each position.
* Use [stop-loss orders](/perps/orders-and-margin#take-profit--stop-loss) — a stop closes your position on your terms before liquidation does it on the system's terms.
* Distance to liquidation is roughly `1 ÷ leverage` minus the maintenance rate. On BTC (1.5% maintenance), a 20x position liquidates after roughly a 3.5% adverse move; at 5x it takes roughly 18.5%. Lowering leverage widens that distance far faster than it reduces your exposure — size accordingly.

**Next:** [Deposits & Withdrawals](/perps/deposits-withdrawals)