What is liquidation?
If the value of your collateral falls below the maintenance margin, your futures account may be subject to liquidation. Depending on the exchange you use, the liquidation occurs in different ways. In general, the liquidation price changes according to the risk and leverage of each user (based on their collateral and net exposure). The larger the total position, the higher the required margin.

To avoid liquidation, you can either close your positions before the liquidation price is reached or add more funds to your collateral balance - causing the liquidation price to move further away from the current market price.
#defi #liquidation #swap