chore: Fix liquidation migration script for coordinator leverage = 1 #2373
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| @@ -2,4 +2,5 @@ ALTER TABLE "positions" | |||
| ADD COLUMN coordinator_liquidation_price REAL NOT NULL DEFAULT 0; | |||
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| UPDATE positions SET coordinator_liquidation_price = average_entry_price * coordinator_leverage / (coordinator_leverage + 1) where trader_direction='short'; | |||
| UPDATE positions SET coordinator_liquidation_price = average_entry_price * coordinator_leverage / (coordinator_leverage - 1) where trader_direction='long'; | |||
| UPDATE positions SET coordinator_liquidation_price = average_entry_price * coordinator_leverage / (coordinator_leverage - 1) where trader_direction='long' and coordinator_leverage > 1; | |||
| UPDATE positions SET coordinator_liquidation_price = average_entry_price * coordinator_leverage where trader_direction='long' and coordinator_leverage = 1; | |||
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🤔 The formula doesn't look right to me. Elsewhere we've set the liquidation price of a party going short at 1x leverage to the maximum price the oracle can attest to. I'm not sure if that's correct either though cc @bonomat.
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Yea, if a party goes short with a leverage of 1 he basically never gets liquidated. So we can set this to a very high number.
On the contrary, if a party goes long with a leverage of 1 his liquidation price is at about 50%, i.e.
(average_entry_price*leverage)/((leverage+1-(maintenance_margin*leverage))) --> average_entry_price/2
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Can I get an approval then? 🙂
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It still looks wrong to me though. AFAICT, you're setting the coordinator's liquidation price to
average_entry_price * 1
if the coordinator goes short. To be consistent with our internal formulas, I think we want to set this to BTCUSD_MAX_PRICE.
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Here we go, this should fix it:
| UPDATE positions SET coordinator_liquidation_price = average_entry_price * coordinator_leverage where trader_direction='long' and coordinator_leverage = 1; | |
| UPDATE positions SET coordinator_liquidation_price = 21_000_000 where trader_direction='long' and coordinator_leverage = 1; |
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fair, I will adapt that.
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@bonomat I used the const from the code, to be consistent with our implementation.
pub const BTCUSD_MAX_PRICE: u64 = 1_048_575;
coordinator/migrations/2024-04-03-105900_add_coordinator_liquidation_price/up.sql
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follow up to review remarks on #2354