Leverage lets a small margin control a larger position, and it multiplies losses as well as gains. If the price moves against you until your margin no longer covers the position, Hyperliquid closes it automatically. That is liquidation, and you can lose the entire margin.
On this page
This page explains the mechanics behind a perpetual position on Hyperliquid: how much margin it needs, what you pay while it is open, and when it is closed against your will.
Perpetuals are leveraged and high risk. You can lose your entire margin, and it can happen quickly. They are not available in every country. Nothing here is investment advice.
Leverage
Leverage is the ratio between your position and the margin behind it. With 10x leverage, $100 of margin controls a $1,000 position. A 1% move in the price then changes your result by about 10% of your margin.
- You set leverage per market. Each market has a maximum that Hyperliquid sets. The app shows it as Max.
- The setting applies to the whole market on your account, including a position you already hold.
- Higher leverage moves your liquidation price closer to the current price. Lower leverage moves it away and ties up more margin.
Cross and isolated margin
| Cross | Isolated | |
|---|---|---|
| Margin | Shared across the whole account | Set aside for one position |
| If the position loses | It draws on your whole trading balance | It can only use its own margin |
| Add or remove margin | Not per position | Yes, with Add margin on the position |
You choose the mode with Cross / Isolated in the ticket. Some markets can only be traded with isolated margin. On strictly isolated markets, margin stays with the position until you reduce or close it.
When you remove margin from an isolated position, its liquidation price moves closer to the current price.
Funding
A perpetual has no expiry date. The funding rate keeps its price close to the spot price: longs and shorts pay each other.
- Funding is charged hourly on the position value, not on your margin.
- A positive rate means longs pay shorts. A negative rate means shorts pay longs.
- Funding goes to other traders, not to THORWallet.
The Funding pane of a market shows the rate history. Your Funding history shows what you paid or received.
Liquidation
If the price moves against your position until your margin no longer covers it, Hyperliquid closes the position automatically. You can lose the margin behind that position. With cross margin, that can be your whole trading balance.
How THORWallet shows the risk:
- Liq. price in the ticket, before you confirm.
- Liq. price and Margin health on each open position. Margin health reads Healthy, Watch or At risk.
- The liquidation level as a line on the chart.
The liquidation price is an estimate. It can change while the position is open, for example when you add or remove margin or change the leverage.
How to lower the risk
- Use lower leverage.
- Set a stop loss. It is not a guarantee: in a fast market it can fill at a worse price.
- Add margin to an isolated position.
- Keep spare USDC in your trading balance if you use cross margin.
- Reduce the position when margin health shows Watch or At risk.
None of these removes the risk. Only trade with money you can afford to lose.
After a liquidation
A liquidation is listed in your account history as Liquidation. A liquidated position cannot be restored, and neither Hyperliquid nor THORWallet support can reverse it.
Related
- Perpetuals in THORWallet
- How to place a perpetual order
- How to deposit to and withdraw from perpetuals
- Trading troubleshooting
- Background: Perpetual futures explained
Common questions
What is liquidation?
When the price moves against your position until the margin no longer covers it, Hyperliquid closes the position automatically. You can lose the margin you put in.
Where do I see my liquidation price?
The order ticket shows it as Liq. price before you confirm. Each open position shows it on the Positions tab.
What is the difference between cross and isolated margin?
Cross margin is shared across your whole account, so all positions draw on the same balance. Isolated margin backs one position only, so a liquidation there is limited to the margin on that position.
What is funding?
Longs and shorts pay each other a funding rate that keeps the contract close to the spot price. On Hyperliquid it is charged hourly on the position value. A positive rate means longs pay shorts.
How can I move my liquidation price further away?
Use lower leverage, reduce the position, or add margin to an isolated position. None of this removes the risk of liquidation.
Thank you.
Sorry about that. Chat with support inside the app, or write to info@thorwallet.org. Support will never ask for your recovery phrase.