# Perps Collateral

#### Perpetuals Collateral

SparkDEX Eternal gives traders flexible control over how collateral is added, adjusted, and managed across active perpetual positions. Proper collateralization is essential to maintaining healthy margin ratios and avoiding liquidation risk, and SparkDEX’s onchain design ensures that every adjustment remains transparent and verifiable.

#### Adding Collateral

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Traders can add collateral to any open position at any time. Increasing collateral raises the margin ratio and reduces liquidation risk, providing a safety buffer during high-volatility periods. Newly added collateral is immediately reflected onchain as part of the open position, providing transparent, verifiable margin.

#### Partial Withdrawals

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If a position maintains a margin ratio safely above the liquidation threshold, traders can withdraw part of their collateral without closing the position. This flexibility allows efficient capital reallocation between positions or across other DeFi strategies, while keeping trades open and stable.

#### Collateral Types

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SparkDEX Eternal supports multi-asset collateral, including WFLR, sFLR, FXRP, and USDT0.

#### Automatic Margin Updates

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Collateral balances update dynamically in response to market changes, funding payments, and realized PnL. These automatic adjustments ensure that margin ratios remain accurate on every block, minimizing errors and protecting traders from surprise liquidations.

#### Liquidations

Liquidations occur only when a position’s margin ratio falls below the required maintenance threshold — meaning the collateral is no longer sufficient to cover potential losses.

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