# Liquidation

The following liquidation rules only apply to trading against the MUX native pool (MUXLP pool). If a trader's position routes to a third-party underlying leveraged trading protocol through the MUX aggregator, the liquidation rules will adapt accordingly. Please check the [Aggregator](/protocol/overview/leveraged-trading-aggregator.md) section and related underlying protocol docs for more details.

## Liquidation Under MUXLP Pool

The maintenance margin is the minimum margin required to keep the position open and not liquidated. The position will be liquidated if its margin falls below the maintenance margin; when the position leverage rises, the likelihood of being affected by MM increases.

Maintenance leverage is the maximum effective leverage that the position leverage can reach. The position will be liquidated if its leverage exceeds the maintenance leverage.

Maintenance Margin (MM) = IndexPrice \* Position Value \* MMR%

* Maintenance Margin Rate (MMR%) = 0.5%

Maintenance Leverage = 1 / MMR%

The liquidation fee on the MUX protocol is 0.1%. Therefore, 0.1% (if it exists) margin will be collected as the fee when a position is liquidated. The remaining margin after liquidation will return to traders.


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