# 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. --- # Agent Instructions: 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: ``` GET https://docs.moonlander.trade/how-to-use/trading/trade-lifecycle/liquidation.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.