# Margin ratio

Liquidation is determined based on your position's margin ratio.

If the margin ratio falls to 6.25%, your position may be liquidated.

Margin ratio is calculated by adding your margin size and PnL for a given position, and then dividing by the position notional (position size multiplied by mark price*).

$margin Ratio = \frac{(margin + unrealizedPnL^*)}{positionNotional}$

## *Notes about margin ratio calculation

Index price calculation check Normally position notional is calculated by multiplying your position size by the asset's mark price. However, when index price diverges from mark price by 10% or more, the position notional is calculated by multiplying position size by the asset's index price. This serves as an additional check before triggering liquidations during severe or anomalous market conditions.

Profit & Loss PnL is calculated using both Mark Price and 15 minute TWAP of Mark Price; the higher of the two values is used when evaluating liquidations conditions.