Margin & Liquidations
How margin and liquidation work on Hyperliquid and Lighter trade accounts.
Margin and liquidation rules are set by the venue, not by Pear. How they apply depends on the account model of the venue you trade on.
Hyperliquid
Hyperliquid supports both isolated and cross margin, chosen per position, on top of its account abstractions (standard, unified, and portfolio-margin accounts). With isolated margin, each position posts its own margin and can be liquidated on its own. With cross margin, positions share the account’s collateral and health is assessed at the account level.
Lighter
Lighter runs its own account model (classic and unified tiers). The same principle applies: perp exchanges force-close positions when the posted margin falls below the maintenance-margin requirement.
What this means for pair and basket positions
- There is no single liquidation price for a pair or basket. Each leg has its own margin requirement, and a pair can reach any given portfolio value along many different price paths (asset A flat while B rises 10%; A up 20% while B up 30%; and so on), so a single "liquidation level" for the combined position is not meaningful.
- A pair’s legs partially hedge each other: moves that cancel out reduce the drawdown on the combined margin. But if the legs diverge (correlation breaks down), both legs can lose value against the same collateral pool and the combined position can be liquidated.
- Monitor your account-level margin health (margin vs maintenance requirements) rather than watching for a single price. Deposit more collateral or reduce positions to stay safe. Check the venue’s documentation for the exact health and liquidation mechanics of each mode.
- Pear does not show an "estimated liquidation price" per trade. For the reasons above it would be misleading.