Account Health & Liquidation
Account Health
The PowerTrade platform estimates and displays your account's health rating on the portfolio screen. This estimate is an indicator of how risky the portfolio is. Once certain risk thresholds are crossed, the account could be taken over by our auto-deleveraging system, or could even undergo liquidation.
If you find your account health number getting low, depositing more assets is the fastest way to avoid having your account deleveraged.
Formula
Account health is displayed as a percentage value between 0 and 100. The formula used for calculating account health is as follows:
where
For more information on Margin calculation, please refer to this article.
SPAN Margin Liquidation Stages
State | Threshold | Description |
---|---|---|
Healthy | >25% | Account is not at risk |
At Risk | 25% | Account is at risk and goes into reduce only mode. Orders that increase maintenance margin not allowed. Withdrawals disabled. |
Auto-Deleverage | 5% | Auto-hedger takes over account and attempts to close positions or delta hedge until account goes below threshold. |
Instant Liquidation | 0% | Assets liquidated at market price until account goes below threshold. |
Bankrupt | 0% | Account is bankrupt. |
Still have questions?
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