# Margin & Liquidation

## Margin & Liquidation

This page explains how **margin level** works in Portal and how to avoid liquidation when trading with leverage.

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### What is Margin Level?

**Margin level** helps you understand the health of your leveraged position:

**Margin level** = (**balance** + **collateral**) / **total debt**\
(Default: 999.00 when no positions are open)

* **Balance** = any unrealized PnL (profit or loss)
* **Collateral** = tokens you’ve deposited as margin
* **Total Debt** = borrowed amount + accumulated funding cost

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### Risk Tiers

<table><thead><tr><th width="155.84375">Risk Level</th><th width="178.6328125">Margin Level Range</th><th>Action</th></tr></thead><tbody><tr><td><strong>Low Risk</strong></td><td>≥ 1.5</td><td>Position is healthy. Monitor market only.</td></tr><tr><td><strong>Medium Risk</strong></td><td>1.15 ≤ x &#x3C; 1.5</td><td>Consider adding collateral or repaying.</td></tr><tr><td><strong>High Risk</strong></td><td>1.10 ≤ x &#x3C; 1.15</td><td>Immediate action strongly recommended.</td></tr><tr><td><strong>Liquidation</strong></td><td>&#x3C; 1.10</td><td>Position will be liquidated automatically.</td></tr></tbody></table>

{% hint style="warning" %}
⚠️ **Liquidation Risk**

When margin level drops below 1.10, your position is subject to forced liquidation to repay borrowed tokens.
{% endhint %}

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### What is Total Debt?

Your **total debt** includes:

* **Borrowed tokens** used to open a position
* **Funding cost**, which accrues hourly:

`Funding cost = balance × funding rate × time`

The longer your position is open, the more cost you accumulate — increasing liquidation risk.

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### How to Avoid Liquidation

* **Add collateral** to increase your margin level
* **Repay borrowed tokens** to reduce debt
* **Monitor market volatility** and take early action when in the medium or high risk zones

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{% hint style="success" %}
💡 You can view your current margin level in the Portal dashboard at any time. Staying above 1.5 is recommended for lower risk.
{% endhint %}


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