Liquidation

Liquidations are possible in power perpetuals. However, only for short positions.

In order to create the power perpetual asset, e.g. sqOSMO, users must deposit base collateral to mint the power asset. This must always fulfill a minimum collateral requirement of 150%. Should the value of a position drop below this threshold it is at risk of liquidation.

For long power perpetual positions it is not possible to get liquidated. Rather long positions are always paying a funding rate in kind to the short market participants.