> For the complete documentation index, see [llms.txt](https://docs.hit.one/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hit.one/1000x/stop-losses-and-liquidation.md).

# Stop Losses and Liquidation

Every position on Hit One has a stop loss.

It is set automatically when the position opens.

If the market moves against you far enough, the stop loss closes the position for you. This is why a position can end without you tapping **Close**.

You never owe more than your trade amount. The stop loss exists to enforce that.

### Why a position can close by itself

At `500x` to `1000x` leverage, prices move fast in PnL terms. A `0.2%` market move can produce a `200%` PnL move.

Hit One closes positions automatically before they can be worth less than zero.

This happens in two scenarios:

1. **Stop loss triggered** — The market moved against you past your stop loss price. The position closes with some collateral preserved.
2. **Liquidation reached** — The market moved so fast that the stop loss could not catch in time. The position closes at the liquidation price, and your payout is capped so you can never go negative.

In both cases, you keep any remaining collateral and any positive PnL up to the close.

### Liquidation

Liquidation is the price where your loss equals `100%` of your collateral.

Beyond that point, you would owe money. Hit One never allows this.

Higher leverage means a thinner cushion before liquidation.

For a `LONG` position on `ETH` at a `$3,000` entry:

| Leverage | Liquidation price | Distance from entry |
| -------- | ----------------- | ------------------- |
| `500x`   | `$2,994`          | `0.20%`             |
| `750x`   | `$2,996`          | `0.13%`             |
| `1000x`  | `$2,997`          | `0.10%`             |

The formulas:

* `LONG liquidation = entry × (1 − 1 / leverage)`
* `SHORT liquidation = entry × (1 + 1 / leverage)`

### Stop loss

Your stop loss sits between your entry price and your liquidation price.

It closes the position before liquidation. That leaves collateral on the table instead of zero.

The distance between your stop loss and your liquidation is the stop loss buffer.

Hit One scales this buffer with leverage. It ranges from roughly `5%` at `500x` to `50%` at `1000x`, in a straight line.

Higher leverage gets a wider buffer because PnL moves faster. The system needs more headroom to close the position cleanly.

You do not set the stop loss price. It is calculated when your position opens and shown in the trading panel.

### Profit Guard

Profit Guard is an opt-in feature that protects a winning position.

Enable it before the spin.

It arms once your PnL reaches `+50%`. It then trails `20%` behind your peak PnL.

If the market retraces, Profit Guard closes the position and locks in the remaining gain.

Profit Guard only activates on profitable trades. It does not change your stop loss or liquidation price.

### What you control vs. what Hit One sets

Hit One sets automatically:

* Stop loss price
* Liquidation price
* The market, side, and leverage for each spin

You control:

* Whether Profit Guard is on
* Manual close, **Sell 50%**, and **Double Down** while the position is open


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