How Does the Liquidation Engine Manage Large Orders?

The liquidation engine typically manages large orders by attempting to execute them gradually through a time-weighted average price (TWAP) or similar algorithm, rather than dumping the entire order at once. This strategy minimizes market impact and slippage, aiming for a better execution price to reduce the liquidation deficit.

However, in extremely volatile markets, the engine may be forced to execute quickly, even at the risk of higher slippage.