# Position Value

### Position Value

$$
v\_p:=p \cdot amount\_{base}+2\sqrt{p} \cdot amount\_{squart}+amount\_{quote}
$$

where $$amount\_{base}$$ is the Base token amount, $$amount\_{squart}$$ is the Squart amount, $$amount\_{quote}$$ is the Quote token amount, and `p` is the current price of the Base token. If the amount is positive, it is considered an asset, and if negative, it is considered a liability.

### Vault Value

The Vault-Value is defined as follows. *Margin* is the amount of collateral.

$$
V\_p=v\_p+margin
$$

### Min. Margin

Min. Margin represents the minimum required Vault-Value. To ensure the position value does not become zero even if the price moves by `r`, the difference between the minimum value of the position within a price movement of +/- `r`% and the current value is set as the minMargin. Predy defines Min. Margin at the price `p` as forrow. In the case of the short Squart position, the $$v\_p$$ is convex downwards, causing the Min. margin to become zero. To create a buffer, add the value obtained by multiplying the short Squart's value by $$r\_{debt}$$ to the Min. margin.

$$
min\_p := v\_p-Min{
v\_{pr},
v\_{\frac{p}{r}},
v\_{(\frac{amount\_{base}}{amount\_{squart}})^2}
}+Min{0, -r\_{debt} \cdot (2\sqrt{p} \cdot amount\_{squart})}
$$

`r` is risk parameter(e.g. r = 1.02).

$$r\_{debt}$$ is (e.g. $$r\_{debt}$$ = 0.001)

 Price $$(\frac{amount\_{base}}{amount\_{squart}})^2$$ is the minimum (or maximum) when considering the position value as a polynomial.

### Safe Condition

The condition for a sufficiently safe position can be expressed by the following formula. If this condition is not met, the position will be forcibly liquidated.

$$
V\_p >= min\_p
$$


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