Your position is liquidated if the margin level of a position falls below the maintenance margin. Whatever margin you have left is lost if a position is liquidated and is taken over by the insurance fund.
The value of a derivatives position is determined using the mark price. The liquidation engine will take over your position if the mark price reaches your liquidation price.
Once a trader’s available balance is about to drop below zero, all open orders for the instrument will be cancelled. If available balance is still due to drop below zero, all relevant positions will be liquidated and taken over by the insurance fund.
The mark price is based on an index price that is derived from seven exchanges for BTC-PERP and ETH-PERP. The index price also accounts for the liquidity of the included exchanges and the index price is calculated as the median of micro-prices, where the micro-price is defined as:
Limit prices or fill prices are used only to calculate PnL. Therefore, if you use a stop loss close to your liquidation price it is possible that the mark price hits the liquidation before your stop loss is filled at your specified price.
You will receive an email from Interdax once a position has been liquidated detailing the position details and mark price at time of liquidation.