On one of my Long Margin Trades the Liquidation price is higher than the current price and the trade has not automatically closed. Any input on how this process works? I thought it would have closed already.
Its been below the price for a couple hours now.
Thanks
-Lucastos
Liquidations are manually triggered. There is an incentive for nodes to do this. It’s possible that the nodes that would normally do the liquidations are not online.
1 Like
How does this protect the borrowed RBTC and borrower from an overnight Flash Crash??
This doesn’t make any sense. This should probably be noted somewhere for newer users in order to help protect their funds. One the active trade it LISTS a Liquidation price. WHY do that if it will not liquidate the trade?
Was super jacked to use this platform, but knowing this isn’t programmed, makes it just too dangerous.
Further discussion appreciated from others users of Sovryn Leverage traders.
-Lucastos
This is the price at which the position is eligible to be liquidated. It cannot be liquidated above (or below, depending on the direction of the trade) this price. However it will only be liquidated if someone running a “watcher” node calls the contract to liquidate the position. This is a manual process (that users running Sovryn Nodes can automate with the right setup). I’ll DM you to get more details about the trade. I can look into it to see if there’s a reason why the watchers wouldn’t have liquidated the trade.
Lucastos has a good point. Liquidation being voluntary and manual introduces a lot of extra risk and uncertainty for margin traders, that doesn’t really seem tenable. Can get ugly fast in times of extreme volatility.
I messaged you back.
Sovryn has been through a few dramatic crashes and the positions that needed to be liquidated were. There are circumstances were it might take longer - however, the performance of the system so far has been well within the bounds of safety.
2 Likes
Thanks for the feedback Yago. I was contacted by another user on Twitter through a PM that it also happened to him/her. So I think it is confusing to users who think the price should liquidate at a reasonable time and near price indicated.
My situation, price was under liquidation by about $400 for 2-3 hours before I closed it manually.
If this is indeed within acceptable range, maybe this can be explained somewhere so users understand how the system may operate. Also I don’t want to scare any users away with missunderstanding such as this. Thanks.
-Lucastos
#StaySovryn.
1 Like