Raven Protocol
  • About Raven Protocol
    • Vision
    • Motivation
    • Mission
  • Raven
    • Liquidity Provision
    • Economic Model
      • Key Concepts
      • Pricing Model
      • Profit/Loss Mechanism
      • Liquidation
      • Incentives
    • Tokenomics
      • vRaven
      • vPubShares
    • Security & Compliance
    • Roadmap
    • Community
  • Tutorial
    • Open Position
    • Redeem / Update Positions
    • Liquidation
    • Liquidity
Powered by GitBook
On this page
  1. Raven
  2. Economic Model

Liquidation

PreviousProfit/Loss MechanismNextIncentives

Last updated 3 months ago

When the ETH price moves against a CALL or PUT position at strike time, the leverage position becomes eligible for liquidation. The liquidation time is determined by the following formula:

Where:

  • Open Position Time is when the position is first opened.

  • Expiration is set to 24 hours.

  • Actual Leverage is the ratio of the position value to the margin.

Reward Distribution for liquidation is as follows:

  • Caller: 50%

  • Pub Vault: 45%

  • Protocol: 5%