# Liquidation

OT uses Mark Price(Oracle price) as benchmark for liquidation and profit calculation.

A position is liquidated when its margin rate is equal to maintenance margin rate.

(IMR)Initial Margin Rate = 1/leverage \* 100%

Margin rate = (Margin + PnL ± fundingFee) / Position notional value 

                    \= (Margin + PnL ± fundingFee) / (Position size(coin) \* mark price)

(MMR)Maintenance Margin Rate = if (IMR/2 > allowMaxMmr) {allowMaxMmr} 

&#x20;                                                          if(IMR/2 < allowMinMmr,){allowMinMmr}

&#x20;                                                          else {IMR/2}

IMR and MMR are recalculated when extra margin is added or removed from a position.

| Index token            | allowMaxMmr | allowMinMmr |
| ---------------------- | ----------- | ----------- |
| BTC                    | 1.3%        | 0.8%        |
| ETH                    | 1.3%        | 0.9%        |
| USDT                   | 0.9%        | 0.5%        |
| Cheems                 | 6%          | 3%          |
| MAV(Maverick Protocol) | 2%          | 1.5%        |
| VELA                   | 2%          | 1.5%        |
| ARKM                   | 2%          | 1.5%        |
| OT                     | 2%          | 1.5%        |
| BNB                    | 1.6%        | 1.2%        |
| Matic                  | 3%          | 1.5%        |
| Arbi                   | 1.6%        | 1.2%        |
| ZKS                    | 1.5%        | 0.9%        |
| Doge                   | 2%          | 1.2%        |
| APT                    | 1.9%        | 1.2%        |
| Sui                    | 1.8%        | 1.2%        |
| USDC                   | 1%          | 0.5%        |
| USDT                   | 1%          | 0.5%        |