If your health ratio falls below the liquidation threshold, anyone can liquidate the position. You may receive less than expected or lose the full position value.
Psi is a solvency adjustment, not a fee. It can reduce or increase adjusted position value depending on pool state. Your payout is not a simple entry-price-to-current-price calculation.The pool cannot pay more collateral than it holds. In stressed states, solvency accounting can cap payouts even when the raw price move looks profitable.
TACO price markets do not use the traditional long/short funding loop, so funding does not rebalance long and short demand the way it does on a standard perpetual.However, a market can enable an optional trader-to-LP funding charge (off by default). When it is enabled, traders pay funding into the LP pool — the crowded side pays a premium and the minority side gets a discount — and it is taken from your margin, reducing your payout and health. Check a market’s funding setting before holding a leveraged position.
Price LPs back a shared pool. Trader wins, liquidations, oracle moves, and pool accounting can all affect LP withdrawal value.LP exposure is bounded by committed collateral, but the withdrawal value of that collateral can still fall.
