Understanding Risk in MegaTAO
This section covers how risk management works in the MegaTAO protocol.
MegaTAO continuously monitors your margin ratio and provides clear guidance:
Healthy (>35%): Your position is operating normally with plenty of safety margin. Continue monitoring but no immediate action required.
Caution (25-35%): Your margin ratio is declining. Monitor closely and consider adding margin to maintain safety.
Danger (20-25%): Your position is at risk. Add margin immediately to avoid liquidation.
Liquidation (<20%): Your position will be automatically closed with a 5% penalty fee.
Liquidation Prevention - How to avoid liquidation
Margin Management - How margin works in the protocol
Last updated 2 days ago