How to stay safe with Turbo Buy
What happens when Bitcoin is down and you have an active Turbo Buy — how the liquidation price works, how regular buys lower your risk, and what to keep in mind.
What happens when Bitcoin is down and you have an active Turbo Buy
You opened Turbo Buy a few months ago, when Bitcoin was trading higher. Now the market is pulling back and you’re wondering what that means for your strategy. Here’s how Turbo Buy behaves in a downturn and why your settings matter.
How the liquidation price works
In Turbo Buy, the Bitcoin you buy is held in a reserve as collateral. The extra buying power Turbo Buy adds is Invity’s until you settle for it. For every buy you make, Turbo Buy adds 60% extra buying power on top. This added amount builds up over time as the balance you settle with Invity when the strategy closes.
Liquidation happens when the market value of the Bitcoin in your reserve falls to a level set a small margin (around 4%) above the total capital Invity has added. Put simply: if the price drops far enough that your collateral can no longer cover Invity’s side, the strategy closes. If that happens, Invity sells your Bitcoin held in reserve to settle the amount owed.
Why regular buys reduce your risk of liquidation
Every new buy adds more Bitcoin to your strategy. If the price is lower than before, it brings down the average buy price across your whole collateral pool. A lower average price means a lower liquidation threshold.
In other words: continuing to buy through a downturn lowers the price at which liquidation would trigger. That’s exactly what Turbo Buy was built to do.
What increases your risk of liquidation
If you cancel your strategy during a price decline, the settlement amount with Invity stays fixed while your Bitcoin is worth less — so the buffer between your collateral and the liquidation price narrows at the moment you close. That’s worth keeping in mind when you’re deciding. Cancelling may still be the right move depending on your situation.
The bottom line
A strategy with regular Turbo Buys lowers its own liquidation threshold over time. That’s the mechanism Turbo Buy was built around.
This is general information about the Turbo Buy feature, not a forecast or financial advice. Past performance isn’t a reliable indicator of future results. Turbo Buy amplifies gains as well as losses.
