# Liquidations

Contracts are typically highly leveraged, meaning traders are required to hold a certain percentage of the position's value on the exchange to keep the position open. This percentage is known as the Maintenance Margin percentage and can be found on the <mark style="color:yellow;">Risk Limits Page.</mark>&#x20;

If a trader is unable to meet the maintenance requirement, the position will be liquidated, and the maintenance margin will be lost. To avoid this, traders can monitor their liquidation price per position through the Open Positions Tab and adjust it by adding additional margin through the Leverage Slider or the Risk Limits tab.

### <mark style="color:yellow;">Liquidation process</mark>

To prevent a traders position from being full liquidated, partial liquidation will involve an automatic reduction of the maintenance margin.

**Users on a lower risk tier**

1. Prodigy cancels any open orders in the contract.
2. If this does not satisfy the maintenance margin requirement then the position will be liquidated by the liquidation engine at the bankruptcy price.

**Users on a higher risk tier**

1. Attempting to bring a user down to a Risk Limit associated with their open orders and current position.
2. Cancelling any open orders and then attempting to bring a user down to a Risk Limit associated with their current position.
3. Submitting a FillOrKill order of the difference between the current Risk Limit position size and the position size to satisfy the margin requirement to avoid liquidation.
4. If the position is still in liquidation then the entire position is taken over by the liquidation engine and a limit order to close the position is placed at the bankruptcy price.


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