> For the complete documentation index, see [llms.txt](https://docs.lighter.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lighter.xyz/trading/prelaunch-markets.md).

# Prelaunch Markets

### Market structure

All prelaunch markets will operate in **isolated mode only**. It is not possible to open positions in cross-margin mode due to the experimental and volatile nature of these markets.

### Liquidations

Due to the nature of prelaunch markets, the liquidation flow is different. **Prelaunch markets have no liquidation fee.**

If a user needs to be liquidated — that is, when their margin falls below the **Maintenance Margin** but remains above the **Close-Out Margin** — the exchange will send an **Immediate-or-Cancel (IoC)** order on behalf of the user to close the position. This will not have a fee associated with it.

If the user falls below the **Close-Out Margin**, they will be directly **Auto-Deleveraged (ADL)**. This flow differs from crypto markets, where the entire account would typically be transferred to LLP. In normal cases, ADL is used only when LLP does not have sufficient funds to cover the losses of a bankrupt account.

**Note:** ADL occurs when a user is below the Close-Out Margin. This does not imply that the user is bankrupt. Because of this, the counterparty (the trader on the other side of the ADL) receives a more favorable execution price.