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Mimicry.orgLaunch App
  • Whitepaper
    • πŸ‘¨β€πŸ«Protocol Overview
    • βš™οΈCore Mechanics
      • 🎲True Odds
      • πŸ’ΈValue Transfer Events
    • 🀹Advanced Features
      • 🎚️Leverage
      • ⏰Automations
        • Automated Stop-Loss
        • Automated Take-Profit
        • Automated Swap-Sides
    • πŸ§‘β€πŸ€β€πŸ§‘Players & Participants
      • πŸŽ₯Directors (Market Sponsors)
      • 🎭Actors (Traders)
      • 🎬Producers (Liquidity Providers)
      • βš–οΈBalancers (Keepers)
      • πŸ‘·Crew (Team)
    • πŸ“ŒFees
    • πŸͺ™Tokenomics
      • πŸ’»In-App Use Cases
      • πŸ’°Rewards
      • πŸ›οΈGovernance
      • πŸ“ŠDistribution
      • πŸ“ˆVesting
    • πŸ‘¨β€πŸ’»Contract Architecture
    • ⚠️Risks & Mitigations
      • Price Manipulation Risk
      • Data Feed Downtime Risk
      • Centralization Risk
      • Smart Contract Risks
      • Macroeconomic Risk
      • Skew-Change Risk
      • Leverage Risk
      • Liquidation Risk
      • Arbitrage Risk
      • Market Abandonment Risk
      • Balancer Shortage Risk
    • πŸ—£οΈNotable Vocabulary
    • 🀝Partner Integrations
    • πŸ—“οΈRoadmap
  • For Devs
    • πŸ“œContracts & Wallets
      • Contracts Overview
      • Contracts Reference
      • Wallets Reference
    • πŸ’ΎSDK
  • FOR COMMUNITY
    • πŸ”—Official Links
    • 🎨Brand Assets
    • πŸŽͺMarkets
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  1. Whitepaper
  2. Risks & Mitigations

Liquidation Risk

A situation may occur where a player’s position is worth less than zero. For example, this may be the case for bearish Mime when the reference-price of a Pantomime more than doubles. In these cases the winning side will have rights to all tokens held by the losing position, but no more than that ceiling. The losing Actor will not owe the winners any additional funds and their Mime will effectively be worthless.

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Last updated 2 years ago

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