# Liquidations ## Maintenance Collateral Maintenance collateral is the minimum collateral required to keep the position open and not liquidated. The position will be liquidated if its collateral falls below the required maintenance collateral. Collateral health ratio is used to determine the maintenance collateral. For any given position, the collateral health ratio is determined as: * Collateral Health Ratio = (Net Collateral + PnL - accumulated margin fee - closing fee) / Net Collateral, where * *Net Collateral= Original Collateral - Opening Fee* * Liquidations happen when collateral health ratio falls to 80% or lower. We plan to open-source our liquidation bot, so that anyone in the community can run liquidators, and ensure that our trading engine functions smoothly. All liquidators (regardless of whether they're run by our team or external bots) get to keep 15% of the liquidated collateral as a liquidation reward. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.avantisfi.com/trading/liquidations.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.