💟Account Health & Liquidations
Last updated
Last updated
Account Health is a percentage indicating the overall risk level of a trader’s positions. It provides a quick overview of the buffer before liquidation.
As your account health changes, so does Chepe’s face. You can think of Chepe as a 2d manifestation of your trading prowess.
Liquidation occurs when a trader's positions are forcibly closed due to insufficient margin to cover unrealized losses. This happens when the trader's positions move unfavorably, causing the Equity Balance to drop below the Maintenance Margin (CVA).
Vibe Trading accounts operate on a cross-margin basis, meaning the entire account balance is considered for margin. Consequently, liquidation can result in the loss of the entire account balance. Users can manage their risk by creating isolated sub-accounts.
The animated Account Health window helps you visualise your risk level, and the "Account Overview" tab on the main trading page offers essential indicators to help users manage their account health.
The Maintenance Margin (CVA) is the minimum amount required to keep an account solvent. Users must ensure their Equity Balance remains above this value to avoid liquidation. If liquidation occurs, the entire CVA is lost or remitted to the counterparty.
When opening a trade, users must deposit a CVA amount based on position size, contract, and leverage:
Note: Higher leverage requires a higher CVA, so users with high leverage should be extra cautious.
The total CVA for open positions is displayed on the "Account Overview" tab.
The Equity Balance is the total account balance at any moment, including all open positions. It consists of the account balance plus Unrealized Profit and Loss (uPNL).
If the Equity Balance falls below the Maintenance Margin (CVA), the account will be liquidated, and the CVA locked in trades will be forfeited.
This section informs users about their available funds for placing new orders and their total allocated amounts.
Allocated Balance: Full balance allocated to your account (inclusive of Equity Balance)
Locked Margin: The margin engaged in live positions, preventing excessive position openings.
Available for Orders: The funds available for placing new orders.
