Glossary

Liquidation

Liquidation is the forced closing of a position whose equity has fallen below the maintenance requirement.

In short

When mark-price losses push a position's equity under maintenance margin, the venue closes it to prevent further deficit. The realised loss is typically worse than the theoretical liquidation price because closing happens into adverse conditions.

Why liquidation is worse than a stop

A stop-loss is your decision at your chosen level. Liquidation is forced at the worst moment available, often when liquidity is thinnest and other accounts are being closed in the same direction.

Nothing in a copy trading system prevents liquidation. Leverage caps and notional limits reduce its probability; they do not remove it.

Triggered off mark price against maintenance margin.
Realised outcome usually worse than the quoted liquidation price.
Contained to a single leader when sub-accounts are isolated.

Questions

Frequently asked

Can I lose more than my sub-account balance?

Losses are bounded by that sub-account's collateral, which is the point of isolating leaders.

Does HyperMirror prevent liquidation?

No. Leverage and notional caps reduce the likelihood; the risk remains.

Keep reading

ADLWhat happens when liquidation is not enough.Liquidation mechanicsStep by step, with loss warning.

Start Autopilot View live performance

Diversified copy trading. On autopilot.

Score-weighted allocation across up to 10 elite Hyperliquid traders, each isolated in its own sub-account. Your funds never leave your account.