Margin and Liquidation
Ollo uses an isolated margin model with explicit liquidation thresholds.
Margin Basics
Each account tracks two buckets:
- Available margin for new orders and withdrawals
- Committed margin locked behind active orders and open positions
When you place an opening order, collateral moves from available to committed. When you close or cancel, margin is released back to available after PnL is realized.
Isolated Risk
Positions are isolated by market. A loss in one market is not supposed to consume the dedicated margin of a different position.
Liquidation Trigger
A position becomes liquidatable when its effective margin ratio falls below the market's maintenance requirement.
That check accounts for:
- Unrealized PnL at the mark price
- Pending funding that has not yet been settled into margin
Liquidation Flow
The liquidation model is permissionless:
- Anyone can trigger liquidation on an underwater position
- The protocol closes the position through the market
- Rewards are paid from remaining margin where available
- Residual shortfall becomes bad debt absorbed by the insurance path where possible
What Traders Should Watch
- Leverage chosen at entry
- Mark price versus entry price
- Liquidation price
- Funding owed or received
- Free margin left in the account