How does liquidation work on Koo?
Koo uses the Risk Ratio of the entire NFT Account as the authoritative liquidation trigger. At 95%, active orders are cancelled; at 100%, forced liquidation is triggered.
Key Information
- Risk boundary: One NFT Account
- Risk-price basis: Mark Price / Mark Value
- Estimated liquidation price: Reference Only
Cross Margin and Risk Ratio
All positions and active orders within one NFT Account share its USDC margin.
Risk Ratio includes the account’s maintenance-margin and fee requirements relative to available account margin.
Trigger sequence
At 95%, all active pending orders in the account are automatically cancelled.
At 100%, forced liquidation is triggered.
A displayed position liquidation price is an estimate and is not the final trigger.
Pricing and dynamic risk
Mark Price / Mark Value is the price basis for maintenance margin and risk calculations; Last Price is not the direct trigger.
The maintenance margin rate (MMR) increases continuously as worst-case net exposure from positions and active orders grows.
The initial margin rate (IMR) is the greater of 1 / maximum leverage and 1.3 × MMR. Effective leverage can fall below the nominal maximum for larger positions.
Partial liquidation and ADL
Large positions may be partially liquidated.
The insurance fund can absorb eligible positions that cannot fill above bankruptcy. ADL is a last resort if the fund is insufficient.
Risk
Derivatives can cause a partial or total loss of margin. Yield-bearing Margin and Vault participation also involve protocol, liquidity and principal-loss risks. Yield is variable and principal remains at risk.
Users who need separate risk boundaries should use separate NFT Accounts; Isolated Margin is not currently available.
FAQ
The NFT Account Risk Ratio reaching 100%.