> ## Documentation Index
> Fetch the complete documentation index at: https://docs.gains.trade/llms.txt
> Use this file to discover all available pages before exploring further.
# Calculating liquidation price
> Learn how to calculate any trade's liquidation price
> *Note: This guide uses **Arbitrum Sepolia**. Use the latest [@gainsnetwork/sdk](https://www.npmjs.com/package/@gainsnetwork/sdk) release — the snippet below was originally written against an older beta and may need minor adjustments.*
To calculate liquidation price, we need to use [SDK's](/developer/technical-reference/sdk) `getLiquidationPrice()` function.
getLiquidationPrice: (trade: [Trade](/developer/technical-reference/sdk/client-types#trade), fee: [Fee](/developer/technical-reference/sdk/client-types#fee), initialAccFees: [InitialAccFees](/developer/technical-reference/sdk/client-types#initialaccfees), context: GetLiquidationPriceContext) => number;
## TradeContainer
To calculate trade's liquidation price, we need to find a trade and its [TradeContainer](/developer/technical-reference/sdk/client-types#tradecontainer) first. TradeContainer is unique object per single trade and is containing all its information.
By inspecting `allTrades` of backend's [`/trading-variables`](/developer/integrators/backend#trading-variables) response, we're able to find all open trades & orders (each represented by single, unique [TradingContainerBackend](/developer/technical-reference/backend/backend-types#tradecontainerbackend) object). Lets pick last market trade (`trade.type` = 0 ) at time of writing this guide, which is:
```typescript theme={null}
{
"trade": {
"user": "0xa110CC27a19f6853e9Aa8Bb8e2C603D7b02ea2df",
"index": "350",
"pairIndex": "103",
"leverage": "45000",
"long": true,
"isOpen": true,
"collateralIndex": "3",
"tradeType": "0",
"collateralAmount": "1938800000",
"openPrice": "47781798348",
"tp": "57338158017",
"sl": "0"
},
"tradeInfo": {
"createdBlock": "72595369",
"tpLastUpdatedBlock": "72595369",
"slLastUpdatedBlock": "72595369",
"maxSlippageP": "0",
"lastOiUpdateTs": "0",
"collateralPriceUsd": "0",
"contractsVersion": "1",
"lastPosIncreaseBlock": "72595369"
},
"liquidationParams": {
"maxLiqSpreadP": "500000000",
"startLiqThresholdP": "900000000000",
"endLiqThresholdP": "650000000000",
"startLeverage": "25000",
"endLeverage": "60000"
},
"initialAccFees": {
"accPairFee": "1461579560",
"accGroupFee": "828216663",
"block": "72595369"
}
}
```
This response is of [TradeContainerBackend](/developer/technical-reference/backend/backend-types#tradecontainerbackend) type, therefore we need to properly convert it to [TradeContainer](/developer/technical-reference/sdk/client-types#tradecontainer) type first (SDK uses [client types](/developer/technical-reference/sdk/client-types)). Converted and normalised trade will look like this:
```typescript theme={null}
{
"trade": {
"user": "0xa110CC27a19f6853e9Aa8Bb8e2C603D7b02ea2df",
"index": 350,
"pairIndex": 103,
"leverage": 45,
"long": true,
"isOpen": true,
"collateralIndex": 3,
"tradeType": 0,
"collateralAmount": 1938.8,
"openPrice": 4.7781798348,
"sl": 0,
"tp": 5.7338158017
},
"tradeInfo": {
"createdBlock": 72595369,
"tpLastUpdatedBlock": 72595369,
"slLastUpdatedBlock": 72595369,
"maxSlippageP": 1,
"lastOiUpdateTs": 1724162804,
"collateralPriceUsd": 1.0000162,
"contractsVersion": 1,
"lastPosIncreaseBlock": 72595369
},
"liquidationParams": {
"maxLiqSpreadP": 0.0005,
"startLiqThresholdP": 0.9,
"endLiqThresholdP": 0.65,
"startLeverage": 25,
"endLeverage": 60
},
"initialAccFees": {
"accPairFee": 0.146157956,
"accGroupFee": 0.0828216663,
"block": 72595369
}
}
```
Respective `trade` and `initialAccFees` objects will be used as first and third arguments of SDK's `getLiquidationPrice()` while `liquidationParams` and `tradeInfo` will be helpful when crafting fourth argument (`context`).
## Fee
Lets focus on second `getLiquidationPrice()` argument now, which is [Fee](/developer/technical-reference/sdk/client-types#fee).
To find proper [Fee](/developer/technical-reference/sdk/client-types#fee) object, we need to compute `feeIndex` for given trade first. By calling backend's [`/trading-variables`](/developer/integrators/backend#trading-variables) we're getting `pairs` and `fees` arrays.
Remember that backend values should be normalised, see [Pair](/developer/technical-reference/sdk/client-types#pair) vs [PairBackend](/developer/technical-reference/backend/backend-types#pairbackend) and [Fee](/developer/technical-reference/sdk/client-types#fee) vs [FeeBackend](/developer/technical-reference/backend/backend-types#feebackend)
With `pairs` and trade's `pairIndex` we compute `feeIndex`:
> pairs\[trade.pairIndex].feeIndex
Now we are able to find our [Fee](/developer/technical-reference/sdk/client-types#fee) by simply accessing `fees[feeIndex]`. Resulting object should look similar to this:
```typescript theme={null}
{
"openFeeP": 0.0003,
"closeFeeP": 0.0006,
"minPositionSizeUsd": 10000,
"triggerOrderFeeP": 0.0002
}
```
## Context
We've now covered 3 arguments and are left with last one, the `GetLiquidationPriceContext`.
There are few context parameters that we can pass here. All of them are coming from backend's [`/trading-variables`](/developer/integrators/backend#trading-variables) endpoint or [`TradeContainer`](#tradecontainer) discussed above.
```typescript theme={null}
type GetLiquidationPriceContext = {
currentBlock: number;
groups: BorrowingFeeGroup[];
pairs: BorrowingFeePair[];
liquidationParams: LiquidationParams | undefined;
pairSpreadP: number | undefined;
collateralPriceUsd: number | undefined;
contractsVersion: ContractsVersion | undefined;
}
```
`currentBlock`
Its current block of underlying network. Use any valid block or backend's [`/trading-variables`](/developer/integrators/backend#trading-variables) response:
> tradingVariables.currentBlock
`groups` and `pairs`
To get `groups` and `pairs` we need to inspect `collaterals` backend [`/trading-variables`](/developer/integrators/backend#trading-variables) response. It is an array of objects corresponding to each supported collateral. Use `trade.collateralIndex` to select proper collateral object, then access its `borrowingFees:`
> tradingVariables.collaterals\[trade.collateralIndex - 1].borrowingFees
Remember that backend values should be normalised, see [PairParamsBorrowingFees](/developer/technical-reference/sdk/client-types#pairparamsborrowingfees) vs [PairParamsBorrowingFeesBackend](/developer/technical-reference/backend/backend-types#pairparamsborrowingfeesbackend)
`liquidationParams`
Available directly on [TradeContainer](#tradecontainer)
`pairSpreadP`
To get `pairSpreadP` inspect `pairs` key of backends `/trading-variables` response. It is an array of objects corresponding to each pair. Use `trade.pairIndex` to select proper pair:
> tradingVariables.pairs\[trade.pairIndex].spreadP
Should be normalised, see [Pair](/developer/technical-reference/sdk/client-types#pair) vs [PairBackend](/developer/technical-reference/backend/backend-types#pairbackend)
`collateralPriceUsd`
Its similar to getting `groups` and `pairs` but select `prices` key after accessing proper `collaterals` entry:
> tradingVariables.collaterals\[trade.collateralIndex - 1].prices.collateralPriceUsd
`contractsVersion`
Available on [TradeContainer](#tradecontainer):
> tradeInfo.contractsVersion
At the end, the context passed to `getLiquidationPrice()` should look similar to this:
```typescript theme={null}
{
"currentBlock": 72867071,
"groups": [...],
"pairs": [...],
"liquidationParams": {
"maxLiqSpreadP": 0.0005,
"startLiqThresholdP": 0.9,
"endLiqThresholdP": 0.65,
"startLeverage": 25,
"endLeverage": 60
},
"pairSpreadP": 0,
"collateralPriceUsd": 1.0000328,
"contractsVersion": 1
}
```
## Calculate liquidation price
Wrapping all of the above, we should pass `trade`, `fee`, `initialAccFees` and `context` to SDK's `getLiquidationPrice()`. This should return single, float number. Per example above the return liquidation price is:
`4.702126243307295`
which matches Gains' UI:
