What liquidation means
Liquidation is an automatic, forced close of your position, triggered by Phoenix when your losses reach the full collateral assigned to that position. Because Solflare Perps uses isolated margin, only the collateral behind that specific position is at risk — the rest of your wallet is unaffected.
⚠️Warning: Liquidation isn't reversible, and it isn't optional — once the liquidation price is hit, Phoenix closes the position automatically. There's no way to "cancel" a liquidation in progress.
What triggers it
Long positions are liquidated if the price falls far enough that your losses equal your collateral.
Short positions are liquidated if the price rises far enough that your losses equal your collateral.
Roughly how the liquidation price is calculated
For an isolated position, the liquidation price is the point where your unrealized loss would equal your assigned collateral. As a simplified approximation (before accounting for fees):
Long: Liquidation price ≈ Entry price × (1 − 1 ÷ Leverage)
Short: Liquidation price ≈ Entry price × (1 + 1 ÷ Leverage)
Example: You open a long at 5x leverage with an entry price of $100. Liquidation price ≈ $100 × (1 − 1/5) = $80
Important: This formula is simplified for intuition only. Your actual liquidation price also factors in trading fees and moves as your position's collateral changes (e.g., after Add/Reduce collateral). Always rely on the exact liquidation price shown in the app — in the order preview before you sign, and on your open position — rather than calculating it yourself.
What happens when you're liquidated
Phoenix closes the position automatically at the liquidation price.
Any funds remaining after liquidation (if any) are credited to your Perps balance; otherwise you receive nothing back for that position.
It appears in your Trade history as "Position liquidated," with a receipt showing entry price, liquidation price, and collateral lost.