> For the complete documentation index, see [llms.txt](https://stablestock.gitbook.io/ss/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://stablestock.gitbook.io/ss/concepts/leverage/managing-your-risk.md).

# Managing your risk

Every position has a risk metric called **LTV** (loan-to-value). The higher the LTV, the higher the risk. It's calculated as:

> **LTV = (total liabilities + accrued interest) / (position value + cash balance in the isolated leverage account)**

Two thresholds matter: the **warning line**, and the **liquidation line**, at which the position is force-closed to repay the loan.

You can see each position's LTV at a glance. It shows **green** while the position is in the safe zone and turns **red** once it reaches the warning line. Hover over the LTV, or click the icon beside it, to see that position's warning and liquidation lines. The exact values are shown on the page and vary by stock.

When your LTV climbs toward the warning line, you have three ways to bring it back down:

* **Add collateral** — top up the position using the add-cash icon or the **Add collateral** button to lower its LTV.
* **Sell** — close part of the position to reduce your exposure.
* **Adjust leverage** — use the **Adjust leverage** tool to bring the position's leverage back into the safe zone.

**Warning notifications.** When your LTV hits the warning line, we'll send you an email. If you haven't linked an email address, you won't receive any other alert for now — in-app notifications will follow once that feature ships. We recommend linking an email so you don't miss a risk alert.

**Liquidation and the liquidation fee.** When your LTV hits the liquidation line, the system force-closes the position to repay the loan. A **1% liquidation fee** applies, calculated on the sale value of the stock and deducted from the proceeds.

{% hint style="info" %}
**Example — what a liquidation costs** Say a position is liquidated and the stock sells for 96 USDT. The charges come off the proceeds in order: the brokerage and platform service fees, then the 1**% liquidation fee** (≈ 0.96 USDT), then any accrued interest, and finally the loan principal. Whatever remains returns to your leverage account. Closing the position yourself before it reaches the liquidation line avoids the 1% liquidation fee — so it's usually cheaper to act early than to wait for a forced close.
{% endhint %}

> **Please note**
>
> 1. Leverage ratios and LTV risk lines are for reference only; the live values shown on the page always take precedence.
> 2. When calculating your LTV and borrowing limit, the platform takes into account your account activity, overall market conditions, price movements, and other relevant factors, and reserves the right to make case-by-case adjustments. If your account is highly concentrated or holds low-liquidity positions, the required collateral may increase.
> 3. The platform reserves the right to adjust the risk parameters shown here, or to suspend leverage and lending services, at any time and without prior notice.
> 4. The ratios shown may be raised or lowered to meet the requirements of different regulators; the rules of the entity you opened your account with apply.