Liquidations

A liquidation in nftperp v2 is a market close against the orderbook. Liquidators get a flat fee of 0.007 ETH for running liquidations. This margin comes from remaining notional unless the position is under bad debt, in which case it will come from the insurance fund.

The portion of a position that gets liquidated in a block is determined by the fluctuation limit (2.5%). The entire position will liquidate if the complete position can be dumped without the price crossing the fluctuation limit. Otherwise, the portion that will keep it below the fluctuation limit is liquidatable.

A Position in nftperp v2 is liquidateable if its margin ratio is below 6.25% when calculated using decision price. The decision price for liquidation is calculated using the index price.

If this price determines the position to be liquidatable, liquidation is executed against the orderbook bids/asks, including the AMM for that range

If you are interested in becoming a liquidator, check the Developers Section.