> For the complete documentation index, see [llms.txt](https://raven-protocol.gitbook.io/raven-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://raven-protocol.gitbook.io/raven-protocol/raven/economic-model/liquidation.md).

# Liquidation

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:

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXesl6ZQwDXl6MUEa5XOmnUior2Au_LDJBf7XqouOmGkoXjCOg54L6_yH4vPoZqPC_LgvWlZFFLs_K-MUXPcDH195gli4MWRKReJFIR9tGOD8bTpQ96L5ZYwkthX6DLalKqFOyVsJzSHnTwWKbkI0nDhMrE?key=XD65uxZAVKSkZW0d2Jq69w" alt=""><figcaption></figcaption></figure>

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%