Traders
Margin
How margin works on Amplifi — per-position liquidation with dynamic liquidation thresholds.
Per-position liquidation
Each position is liquidated independently. There is no cross-margin health factor and Amplifi never force-closes a position to cover a loss. This means Amplifi does not enforce AutoDeLeverage (ADL). Note that if a liquidation doesn't fully repay the loan, the shortfall is first covered by available cash in your account before it reaches the lending pool. Positions are independent, but not fully isolated from your account balance.
Your margin = your deposit for that specific position.
At 5x leverage with $10 margin:
- Position size: $50
- Loan: $40
- Your equity: $10
Margin and equity
Your equity in a position changes as the market moves:
equity = (currentPrice × shares) - loanPrincipal - accruedInterest
- If the price goes up, your equity increases
- If the price goes down, your equity decreases
- Interest accrual slowly reduces equity over time
Your P&L is the change in equity from your initial margin.
Liquidation threshold
Amplifi uses a market-specific Layer 1 threshold. For example, a 20% threshold places the base trigger where projected post-sale equity reaches approximately 0.20 × (original margin - accrued interest), before the liquidation penalty. Other markets use different thresholds. Fees, accrued interest, and depth can tighten the trigger; the order preview and position details show the estimate for your position.
The threshold provides a buffer but does not guarantee a particular amount will remain after execution. It exists to:
- Protect the lending pool from bad debt
- Leave you with some equity after liquidation
- Provide a buffer for execution slippage and fees
What affects the liquidation price
| Factor | Effect |
|---|---|
| Leverage | Higher leverage = liquidation price closer to entry |
| Accrued interest | Tightens the liquidation threshold over time |
| Orderbook depth | Thin liquidity pushes the liquidation price closer to the current price |
| CLOB fees | Accounted for in the liquidation price calculation (quadratic formula) |
⚠️ Warning
Your liquidation price is dynamic. It can move closer to the current price if orderbook liquidity decreases or as interest accrues. Always monitor your positions.
Example
Illustration with a 20% Layer 1 threshold, no accrued interest, and no fee or depth adjustment:
| Value | |
|---|---|
| Entry price | $0.50 |
| Leverage | 5x |
| Margin | $10 |
| Position size | $50 |
| Shares | 100 |
| Loan principal | $40 |
| Approximate liquidation price | ~$0.42 |
If the price drops from $0.50 to $0.42:
- Shares worth: $42
- Loan: $40
- Remaining equity: ~$2 (20% of original $10 margin)
- Liquidation triggers → shares sold → loan repaid → remaining cash stays in your wallet, reduced by execution costs and the liquidation penalty
Adding margin
Currently, you cannot add margin to an existing position. To increase your exposure to a market, open a new position. Existing positions with the same direction may be merged automatically.
Minimum deposit
The minimum deposit amount is $2 USDC.