The liquidation price displayed in the UI is a real-time estimate, not a fixed threshold. Because Variational uses a cross-margin system, the point at which the Trigger Condition (Maintenance Margin ≥ 100%) is met is dynamic and subject to several account-level variables.

You may be liquidated before the market reaches the estimated liquidation price due to the following technical factors:

In a cross-margin environment, your Maintenance Margin (MM) is calculated across your entire portfolio.

Unrealized losses in other positions, or an increase in their margin requirements, will consume the collateral supporting your total account. This can push your account-wide Maintenance Margin to 100% regardless of the price action of a single asset.

Omni triggers liquidations based on a fast EMA (Exponential Moving Average) of the mark price to dampen the impact of volatile wicks.

If the market moves rapidly, this EMA may breach the trigger condition before the live mark price reflected in the UI reaches the estimated liquidation level.

Your total equity is constantly adjusted by Realized PnL (RPnL), primarily through funding payments.

Continuous funding outflows reduce your balance, thereby increasing your Maintenance Margin percentage and effectively moving the actual liquidation trigger closer to the current Mark Price.

The liquidation price shown is the price at which your MM is estimated to hit 100%.

Any change in account leverage, total position size, or collateral value immediately invalidates the previous estimate.

Once a partial liquidation is triggered, the position is force-closed as the taker, incurring a 0.5% penalty.

This penalty is deducted from your remaining equity, which can immediately cause the MM for remaining positions to exceed 100%, triggering further liquidations in rapid succession.

The UI-provided liquidation price is a snapshot based on current account health.

In a cross-margin system, any degradation in total account equity, whether from funding fees, other losing positions, or EMA price divergence, will cause the 100% MM trigger to be breached earlier than the initial estimate suggests.