> For the complete documentation index, see [llms.txt](https://yubit.gitbook.io/yubit/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://yubit.gitbook.io/yubit/derivatives-trading/futures-faq/liquidation-and-funding.md).

# Liquidation & Funding

Liquidation and funding are core mechanisms of perpetual contracts. This section explains how liquidation works, how your liquidation price is calculated, and how funding fees are charged between traders to keep contract prices in line with spot prices.