Liquidation

Please note that leverage trading carries a higher degree of risk as small movements in the market are amplified in the price movement of an underlying asset. Traders should engage with caution or may be forced to liquidate and bear losses accordingly.

Liquidations on our application are governed by the AAVE protocol as Flash Leverage utilizes AAVE V2 as the underlying lending protocol. You can find more details about AAVE liquidations here: https://docs.aave.com/faq/liquidations

Users are advised to maintain the health factor of their account above 1. Should the health factor go below 1, your position will be liquidated and the remaining assets will be deposited back into your account.

If your account reaches a value close to liquidation threshold, users can add margin in USDC to increase their health factor.