> For the complete documentation index, see [llms.txt](https://docs-chfry.gitbook.io/doc/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs-chfry.gitbook.io/doc/flash-leverage/liquidation.md).

# 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.&#x20;

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