# Marginal Rate

Liquidation is triggered based on your position margin rate.

![](https://1138493020-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MizhEzeRNESY1cK-eq_%2F-Mj8aoPUwXloVa2qQYhb%2F-Mj8cErzzHLAh9UJrKLu%2F%E5%9B%BE%E7%89%871.png?alt=media\&token=b709fe08-aac4-4b92-93ed-6163613fc7b2)

If the margin rate drops to 6.25%, your position may be liquidated.

## The margin rate is calculated by adding the margin size of a given position and PnL, and then dividing by the nominal value of the position (position size multiplied by the marked price\*).

![](https://1138493020-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MizhEzeRNESY1cK-eq_%2F-Mj8aoPUwXloVa2qQYhb%2F-Mj8cMeJMUlt7z4z5LkV%2F%E5%9B%BE%E7%89%872.png?alt=media\&token=1101c58e-a40d-45dd-801f-315a7fdb0386)

## About the calculation of margin rate

Index price calculation

Usually, the notional value of a position is calculated by multiplying the size of the position by the marked price of the asset. However, when the index price differs from the marked price by 10% or more, the nominal value of the position is calculated by multiplying the size of the position by the index price of the asset. This is another check before liquidation is triggered under severe volatility or abnormal market conditions。

## Profit and loss

PnL is calculated using the marked price or the 15-minute TWAP of the marked price; when evaluating liquidation conditions, the higher of the two values ​​will be used.

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