Decentralized exchanges (DEXs) on blockchain networks are employing a gradual liquidation mechanism, differing from traditional exchanges where entire positions are liquidated at a specific price point, commonly known as a margin call. In contrast, on-chain DEXs typically liquidate positions in stages. When a liquidation price is reached, approximately 20% of the position is liquidated, and the liquidation price is adjusted downward. If the price does not fall to the new liquidation level, the remaining position remains secure. For instance, a trader was partially liquidated at $4,177, resulting in a 20% reduction of their position. The new liquidation price was then adjusted to $4,159. As long as the price does not drop below $4,159, the remaining position is protected from further liquidation.