⚠️ DERIVATIVES CHECK: LIQUIDATION PRICE IS NOT A GUARANTEE
A displayed liquidation price is an estimate based on margin requirements and available funds.
Why the actual outcome can differ:
• 📊 Maintenance-margin requirements can change
• 💰 Account equity changes with unrealized P&L
• 🌊 Volatility and liquidity can affect liquidation execution
• 🔄 Other positions can affect shared margin
• ⏱️ Market conditions can change faster than the displayed estimate
BEFORE USING LEVERAGE:
☑️ Check your margin mode
☑️ Know your maintenance margin
☑️ Monitor margin ratio
☑️ Understand whether collateral is shared
☑️ Keep a buffer instead of relying on one liquidation-price number
Key lesson: A liquidation price is a risk-management reference, not a guaranteed exit level.
@cryptolearninghubs
