⚙️Liquidation Mechanism

Liquidation in the context of leverage trading is a crucial mechanism that occurs when a trader's position falls below a specified margin requirement. Essentially, if the value of the assets held in a leveraged position drops to a point where it no longer covers the required margin, the position is automatically closed, or "liquidated," by the platform. This process is designed to minimize potential losses and protect both the trader and the platform from incurring a negative balance. Liquidation is a key risk management tool in leverage trading, ensuring that losses do not exceed the trader's initial