Risks

Liquidation Risk

Margin Trade create a debt position, so liquidation can occur if the loan-to-value (LTV) exceeds the liquidation threshold.

Depeg Risk

If the asset depegs(eg:USDC) and causes an oracle price change, the position’s LTV may rise above the Liq LTV, resulting in liquidation.

Auto Deleveraging

Current includes an auto-deleverage feature that systematically unwinds debt and collateral to keep each asset’s balance at safe levels. Deleveraging runs automatically and usually leaves the position with a lower, safer LTV. Users should always monitor Current’s social channels, where any margin-call window will be announced before deleveraging starts.