> For the complete documentation index, see [llms.txt](https://docs.moonlander.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.moonlander.trade/how-to-use/trading/trade-lifecycle/liquidation.md).

# Liquidation

Liquidation can be triggered by the following:

* Market price hitting the liquidation price (See [this page](/how-to-use/trading/liquidation.md) for more information)
* Having insufficient collateral to cover fees

When either situation occurs, your position will be closed automatically. Collateral will be used to pay off the losses and sent to the $MLP pool as a liquidation fee.