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> define liquidation

Liquidation

When a leveraged position or loan is forcibly closed because the collateral is no longer enough to cover it. Lending protocols and perp exchanges liquidate automatically to protect lenders.

Related terms

LeveragePerpetual futures (perps)

Where this comes up in our coverage

EthereumETHBitcoinBTCSolanaSOLFlareFLRHyperliquidHYPELighterLITJupiterJUPPapertrade

→ Videos that cover it

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Lighter LIT Token Autopsy: Can Buybacks Beat the Unlocks? | Daily Crypto IQ 🔥▶ watch

Lighter LIT Token Autopsy: Can Buybacks Beat the Unlocks? | Daily Crypto IQ 🔥

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Bitcoin Rally: Is Leverage Driving the Price? | Daily Crypto IQ

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