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# Auto Deleverage and Mandatory Liquidation

The fluctuation of price may causes the remaining equity of a position to be negative, thus cause unavoidable risk to the system. Derify protocol may automatically reduce or liquidate positions according to the margin level of them.

### Auto Deleverage

When remaining margin level is lower than the Maintenance Margin Level, but higher than Liquidation Margin Level , system will automatically reduce the position until it's margin level is higher than the Maintenance Margin Level .

### Mandatory Liquidation

When remaining margin level is lower than the the Liquidation Margin Level , system will automatically close the position, any remaining margin will be allocated to the insurance pool.