Risk & Liquidation Prediction Markets
The part that keeps your account alive — how liquidation works, how much margin buffer you need, when to deleverage, and how to size positions so one bad move doesn't wipe you out.
New to leveraging Risk & Liquidation markets? Start with Leverage Trading on Polymarket: The Complete Guide.
How Much Leverage Is Too Much on Polymarket?
Most Polymarket traders should stay at 2-3x leverage. At 5x, a 15-16% price swing liquidates your entire position - and prediction markets routinely move 20%+ on news events.
GuideAvoiding Liquidation on Leveraged Polymarket Sports Trades
Polymarket sports positions at 5x leverage liquidate after just a 15-16% adverse move - and live games routinely swing 20-30% on a single play. Learn how liquidation triggers on the depth-weighted mark price and the specific tactics that keep leveraged sports traders solvent.
GuideRisk Management for Prediction Market Leverage
Proper bankroll management for leveraged Polymarket trading means risking 1-2% per position at max leverage, maintaining 30-50% cash reserves, and scaling position sizes inversely with leverage multiple.
GuideHow to Reduce Leverage on a Polymarket Position
Deleveraging reduces your leverage ratio before the market forces liquidation. At 5x leverage, a 15-16% adverse move triggers liquidation - learn when and how to add collateral, trim positions, or exit entirely to preserve equity.
GuideFull vs Partial Liquidation on Polymarket Leverage
Full liquidation closes your entire leveraged position when LTV crosses 85%, returning no surplus. Unlike partial liquidation, there is no gradual margin call - at 5x leverage, a 15-16% adverse move triggers complete position loss plus a 5% liquidator fee.
GuideHow Much Margin Do You Need on Polymarket?
Leveraged Polymarket positions need at least a 5% margin buffer to avoid liquidation - the gap between 80% max LTV and the 85% liquidation threshold. At 5x leverage, a 15-16% adverse move triggers full liquidation. Most traders should target 10-20% buffer by using 2-4x leverage instead of maximum.
GuideHow to Calculate Your Liquidation Price on PredMart
Learn exactly how PredMart calculates your liquidation price using the 85% LTV threshold and depth-weighted mark, with worked examples at 5x and 2x leverage.
GuideWhat Happens When a Leveraged Polymarket Position Gets Liquidated?
How liquidation actually works in leveraged prediction-market trading — mark price, LTV, thresholds, and why the price that closes you isn't the last trade.