Prices and liquidation
The mark price#
Windup's pricing service publishes a mark price for each graduated market. The market uses this price to assess position health. The price comes from a time-weighted average of the token pool's reserve price over at least 60 seconds. A valid observation window can be up to 180 seconds long.
This averages the pool's price over time. It still depends on that pool and the operator publishing the observation. It is not an independent price from other exchanges.
Windup refreshes prices as markets move and positions remain open. The contract rejects marks older than 300 seconds. If a service interruption prevents fresh pricing or liquidation coverage, the app stops accepting new positions until coverage returns.
Trading limits#
New positions must meet several checks:
- The token has graduated and the price feed has warmed up.
- The mark is current, and the spot price is within 1% of it before and after the trade.
- Lending inventory and an active-position slot are available.
- The pool retains at least 100 USDC and at least 100 times the outstanding debt in each corresponding reserve asset.
- The position starts healthy and can be unwound within the contract's execution limits.
These checks can reject a trade even when your wallet has sufficient USDC. A recently graduated pool can support only small positions. The 10Γ ceiling does not guarantee a particular order size.
When liquidation becomes possible#
The contract calculates equity from the marked collateral value, debt, borrowing interest and closing-fee basis. Maintenance is 6% of current marked token exposure.
A position becomes liquidatable when equity is at or below maintenance, including zero or negative equity. This threshold is based on exposure, not simply 6% of your original deposit.
Windup's liquidation service monitors open positions and submits eligible positions for liquidation. The market executes an actual pool trade to recover debt. Liquidation must also meet the contract's 3% adverse execution band. Fast price moves, thin liquidity or manipulation can leave a position liquidatable but unable to execute within that band.
Liquidation is therefore not a guaranteed stop-loss. You can lose the posted margin, and unrecovered debt can cause losses for lenders. A time-averaged mark does not eliminate price gaps or pool manipulation.