Liquidations and halts

Hard-bust liquidations at a displayed bust price, and what happens when a stock stops trading.

Each position has a displayed bust price, set 5 bps of price before the price at which the position's equity would reach zero.

Liquidation is a hard bust. When the Pyth price crosses the bust price, the liquidation keeper can remove the position, and the full isolated margin is forfeited, even if a voluntary close a moment earlier would have returned some of it. The full lost margin counts as eligible loss for that period's $TRADE emissions.

When a stock reopens after a lock (weekend, holiday or halt), the first fresh price settles every position whose bust price was crossed during the gap.

Halts

When the exchange halts a stock, the market locks. Halts are detected from an independent halt feed and an on-chain stall check (price and confidence unchanged for several updates), not just from the price going stale, because oracles may keep re-sending the last price during a halt. Nothing opens, closes or liquidates. When trading resumes, the first fresh price settles everything.

There is no cap on what a position can win (decision D11). A stock that halts and resumes sharply higher pays its longs in full.