# Autonomous Margin Layer

> The Autonomous Margin Layer (AML) is Liqui’s intelligent module for margin trading, combining AI agents and smart contracts deployed on MegaETH. 
>
> AML enables adaptive leveraged trading by dynamically adjusting position parameters based on market conditions, user behavior, and real-time risk evaluation.

### AML Components

**AI Agents:**

* Analyzes market data in real time (price, volatility, liquidity, trader activity)
* Determines leverage, liquidation thresholds, and position risk profile

**Oracle Layer:**

* Relays AI decisions to smart contracts on MegaETH
* Can use multisig or custom oracle implementation

 **Smart Contracts:**

* Enforce AI recommendations: open positions, adjust leverage, trigger liquidation
* Use isolated collateral storage and dynamic margin levels

### How It Works:

* The user initiates a margin position through the Liqui interface
* The AI agent evaluates acceptable leverage, risk score, and liquidation threshold
* The parameters are signed and sent to the contract
* The smart contract executes the position under those constraints
* The AI continuously monitors the position and suggests updates or closure when needed

### AI Feedback & Security

* All AI decisions include a signature and hash, verified on-chain
* Historical data feeds back into model improvement
* Contracts include failsafes: halts, freezes, risk boundary checks

{% hint style="info" %}
**Benefits:**

* Adaptive leverage configuration in real time
* Safer and more precise liquidation logic
* AI-driven risk profiling per user and asset
* Transparent and verifiable margin management
  {% endhint %}


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