I was asked: Why are liquidations based on the mark price?
I usually answer like this: Liquidations are based on the mark price. When the latest price briefly wicks, if the mark price hasn’t reached the liquidation price, the position usually won’t be liquidated. The reason we don’t use the latest price to determine liquidations is to avoid unreasonable liquidations triggered by brief price distortions in a single market.
$BTC 82077.65（+1.7%）
If anything is unclear, leave a comment and ask me.
#BTC
I usually answer like this: Liquidations are based on the mark price. When the latest price briefly wicks, if the mark price hasn’t reached the liquidation price, the position usually won’t be liquidated. The reason we don’t use the latest price to determine liquidations is to avoid unreasonable liquidations triggered by brief price distortions in a single market.
$BTC 82077.65（+1.7%）
If anything is unclear, leave a comment and ask me.
#BTC