> For the complete documentation index, see [llms.txt](https://docs.jaawle.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.jaawle.xyz/risk/traders.md). # Risks for traders Leverage multiplies both directions. This page lists what can cost you money beyond the price moving against you. ## Liquidation A position is liquidated when its equity, collateral plus unrealised result minus what it owes, falls to the maintenance margin: 0.5 % of size, 1.5× that outside the regular session. At 10× leverage that is a move of roughly 9 % against you; at 2× roughly 49 %. The penalty is 1.5 % of the notional closed, and on a full liquidation the collateral left after the penalty goes to the pool. The positions table shows the liquidation price and a health bar; the chart shows the liquidation line. See [Liquidation and insurance](/risk/liquidation-and-insurance.md). ## Gaps Stock markets close every evening and every weekend. The price at the next open can be far from the close, and nothing executes in between. A stop-loss placed at the close executes at the first print of the next session, at that price, which may be well through the stop. Position sizing, not the stop, is what limits an overnight loss. ## The confidence band You buy at the ask and sell at the bid, the oracle mid plus and minus Pyth's confidence band. On liquid stocks the band is a few basis points in the session; it widens when markets are volatile and outside the session. A round trip costs the band twice plus two taker fees. ## Carry Borrow accrues every second, proportional to how much of the pool's capital is in use. Funding is paid by the heavier side to the pool, proportional to the skew. Both are settled at close and both grow with time held. A long held through an ex-date is credited the dividend; a short is debited it. ## The session Opens only happen in the regular session. Outside it, closes and liquidations still run, at twice the taker fee and 1.5× the maintenance margin. If you cannot close a stock position at 8 pm, the exchange is closed and nobody can. ## Counterparty The pool is the counterparty and pays your gains from its assets. A pool that has lost heavily to traders is protected by the insurance vault up to its caps; beyond that, a position's payout is limited to what the pool holds. The pool's size and utilisation are visible on the Pool page. ## Keys Collateral is held by the position contract and paid back to the wallet that opened the position. Losing the wallet loses the position. One-click trading delegates signing to a browser key with a budget you set; revoke it if the browser is compromised. See [One-click trading](/product/one-click-trading.md). --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.jaawle.xyz/risk/traders.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.