> For the complete documentation index, see [llms.txt](https://help.trade.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.trade.fun/perps-spot/perpetual-spot-page/liquidation-depth.md). # Liquidation Depth The Liquidation Depth chart shows the distribution of leveraged positions that are at risk of liquidation at different price levels. It is only available on Perpetual Markets, not spot.

### Purpose This chart allows traders to visualize where large amounts of **forced liquidations** may happen, helping them anticipate volatile moves caused by **liquidation cascades**. *** ### Chart Details * **X-Axis**: BTC price levels * **Left Y-Axis**: Cumulative liquidation value in USD * **Right Y-Axis**: Liquidation size (contracts/tokens) *** ### Layers * **Long Liquidation Size / Value (Red)** – Positions that will be liquidated if price drops. * **Short Liquidation Size / Value (Green)** – Positions that will be liquidated if price rises. * **Dashed Line** – Indicates the current market price. *** ### Why It Matters * **Volatility Forecasting** – Anticipate sharp moves if price nears a **cluster of liquidations**. * **Entry Timing** – Identify levels where liquidations may cause **short-term wicks** or **slippage**. * **Risk Awareness** – Avoid entering positions near price levels packed with liquidation risk. * **Market Maker Behavior** – Market makers may intentionally move price to **trigger liquidations** of large nearby positions, as it's an opportunity for them to capture volume and fees. This tool is critical for understanding **where the pain points are in the market** – and who might be targeting them.