# Liquidations, Margin Management, and Account Health

**Liquidations**

Liquidation occurs when a trader’s account balance can no longer cover unrealized losses, forcing the system to close all positions. This happens when the **Equity Balance** falls below the **Maintenance Margin (CVA)**.

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**Cross-Margin Risk:** Accounts on the intent-based system use cross-margin, meaning liquidation impacts the entire account balance. To mitigate this risk, traders can create isolated sub-accounts for better control.
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For real-time insights, traders can monitor key indicators in the **Account Overview** section of the trading interface.

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**Estimated Liquidation Prices**

The intent-based system provides estimated liquidation prices for open and new positions to help traders manage risks.

* For **new** trades, liquidation price estimates appear in the trade details.
* For **open** trades, estimates can be viewed in the **Positions** tab.

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**Note:** Liquidation price estimates are dynamic and may change due to account balance or position adjustments. Liquidation may occur before the estimated price is reached.
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**Account Health**

Account Health is a percentage indicating how close an account is to liquidation, offering a quick snapshot of a trader’s risk level.

**Formula:** \
`Account Health = (equity - maintenanceMargin) / (allocatedBalance - maintenanceMargin)`

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**Maintenance Margin (CVA)**

The **CVA** is the minimum margin required to keep the account solvent. If the **Equity Balance** falls below the CVA, the account will be liquidated, and the CVA forfeited.

* **Trade Requirements:** A CVA deposit is required for each trade based on position size, contract type, and leverage used.
* **High-Leverage Caution:** Higher leverage demands higher CVA, increasing liquidation risk.

Traders can view their total CVA for all open positions in the **Account Overview** tab.

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**Equity Balance**

Equity Balance reflects the account’s total value, combining the account balance with unrealized profit or loss (uPNL).

* **Formula:** `Allocated Balance + uPNL`

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**Liquidation Risk:** If the Equity Balance drops below the CVA, the account is liquidated, and the locked CVA is forfeited.
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**Remaining Equity to Liquidation**

This metric indicates how much equity is left before liquidation occurs.

* **Formula:** `Equity Balance - Maintenance Margin (CVA)`

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**Critical Threshold:** If this value reaches zero, the entire account is liquidated.
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**Available for Orders**

This reflects the funds still available for new orders after accounting for locked margin and CVA.

* **Formula:** `Available for Orders = Equity Balance - Locked Margin - Maintenance Margin` 


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Managing Account Health and margin effectively is key to successful trading. By monitoring metrics like Equity Balance, Remaining Equity to Liquidation, and CVA, traders can reduce risks, make informed decisions, and maintain better control over their trades.