What is the difference between Liquidation Price and Bankruptcy Price?

Liquidation Price is the price at which your position becomes eligible for liquidation because your available margin is no longer enough to meet the maintenance margin requirement. On Mudrex, liquidation checks are triggered using the Mark Price.

Bankruptcy Price is the price at which your entire initial margin is fully exhausted (your margin reaches zero). When liquidation happens, the position is closed at the bankruptcy price. If the final execution is better than the bankruptcy price, any remaining margin goes to the Insurance Fund. If execution is worse, the Insurance Fund covers the shortfall so losses do not spill over to other traders.