> ## Documentation Index
> Fetch the complete documentation index at: https://docs.roxom.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Liquidation Triggers & Overview

> Liquidation triggers when your Margin Ratio reaches 100%, meaning your equity equals maintenance margin.

If a position's losses become too large relative to its collateral, Roxom's liquidation engine will intervene to close the position and protect the account from going negative.

When an account's **Margin Ratio reaches 100%** (meaning account equity equals the maintenance margin requirement for the position), that position is flagged for liquidation. In simpler terms, the account has no more free margin – any further loss would start eating into collateral it doesn't have. At this point, the engine initiates a liquidation sequence to close the position before the account balance goes below zero.