> For clean Markdown of any page, append .md to the page URL.
> For a complete documentation index, see https://docs.paradex.trade/risk/llms.txt.
> For AI client integration (Claude Code, Cursor, etc.), connect to the MCP server at https://docs.paradex.trade/_mcp/server.

# Risk & Liquidations

## Docs

- [Margin System](https://docs.paradex.trade/risk/margin-system.md): Understanding Paradex's margin modes and risk management
- [Margin Term Reference](https://docs.paradex.trade/risk/margin-term-reference.md)
- [Paradex Risk Checks](https://docs.paradex.trade/risk/paradex-risk-checks.md)
- [Mark Price Calculation](https://docs.paradex.trade/risk/mark-price-calculation.md)
- [Cross Margin Requirement](https://docs.paradex.trade/risk/cross-margin-requirement.md)
- [Portfolio Margin](https://docs.paradex.trade/risk/portfolio-margin.md): Reduced margin through portfolio-level risk evaluation
- [Price Bands](https://docs.paradex.trade/risk/price-bands.md)
- [Position Limit](https://docs.paradex.trade/risk/position-limit.md)
- [Funding Mechanism](https://docs.paradex.trade/risk/funding-mechanism.md): Multi-venue impact-based continuous funding mechanism
- [Deleveraging](https://docs.paradex.trade/risk/deleveraging.md)
- [Liquidations](https://docs.paradex.trade/risk/liquidations.md): A summary of Paradex liquidation mechanism
- [Socialized Losses and Last Resort Mechanism](https://docs.paradex.trade/risk/socialized-losses.md)
- [Trade flow and busts](https://docs.paradex.trade/risk/trade-busts.md): How trades move from order submission to on-chain settlement, and when they can be reversed.
- [Risk & Liquidations](https://docs.paradex.trade/risk/overview.md): Understand how Paradex protects traders and maintains platform stability through its margin system, risk checks, and liquidation mechanisms.