01Definition
Automatic closure of a leveraged position when collateral no longer satisfies maintenance requirements.
02Context
Automatic closure of a leveraged position when collateral no longer satisfies maintenance requirements. This coordinate is placed in the wider system through its protocol, economic and historical relationships.
03Why it matters
Understanding Forced liquidation helps distinguish a verifiable Bitcoin mechanism or historical record from slogans, products and market narratives.
⌖Reference points
01
Linked to related atlas coordinates
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Grounded in a source record
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Explains function and trade-offs
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Part of the open Bitcoin knowledge graph