> For the complete documentation index, see [llms.txt](https://docs.hyprearn.com/HnETD1HQdaN5QhTwmV4l/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hyprearn.com/HnETD1HQdaN5QhTwmV4l/others/risk-management-and-safety.md). # Risk Management & Safety Trading perpetual futures involves real financial risk. This page covers how HyprEarn is built to keep that risk visible, bounded and in your control at all times. ### **Liquidation** A liquidation occurs when your margin balance falls below the maintenance margin required to hold your position. The position is force-closed to prevent further losses from exceeding your collateral.
The **Liquidation Price** is displayed in real time in the Additional Info panel before you open any position. It recalculates instantly as you adjust leverage or margin. Always check it relative to key support and resistance levels before executing. > The higher your leverage, the closer the liquidation price is to your entry. A 10x position can be liquidated with a \~10% move against you. *** ### Margin Modes **Isolated margin** caps your loss to the margin allocated to that specific position. If liquidated, only that margin is lost, the rest of your balance is unaffected. Recommended for most users. **Cross margin** uses your full USDC balance as collateral. It can absorb larger drawdowns without liquidating, but a losing position can draw down your entire account. Use with caution. *** ### Stop Loss Every trade on HyprEarn requires a Stop Loss to be set before execution. This is enforced by design, not optional. Setting a Stop Loss means your maximum loss is defined and calculated in dollar terms before a single dollar of capital is committed. Stop Loss orders execute as market orders when the trigger price is reached. During periods of extreme volatility, the fill price may differ slightly from the trigger. *** ### Take Profit Take Profit orders automatically close your position at a target price to lock in gains. Like Stop Loss, they execute as market orders at trigger. If both TP and SL are active and one triggers, the other is automatically canceled. *** ### Leverage The terminal allows up to 50x leverage depending on the asset. Higher leverage is not inherently better. It compresses the distance between your entry and liquidation price and amplifies losses at the same rate as gains. For Agents, leverage is dynamically managed by the strategy, typically between 3x and 10x and adjusted based on prevailing market volatility. *** ### Non-Custodial Architecture HyprEarn does not hold your funds. All positions are settled in USDC directly onchain through the underlying DEX (e.g. Hyperliquid). You retain ownership of your capital at all times. Depositing into an Agent does not transfer custody; you can withdraw or deactivate at any time. *** ### Key Habits * Always set a Stop Loss before entering a position. * Use Isolated margin unless you have a specific reason to use Cross. * Check the Liquidation Price before adjusting leverage. * Monitor the Mark vs. Oracle spread; a wide divergence increases liquidation risk even without adverse price movement. * In Agents, treat APR figures as historical performance, not a guarantee of future returns.