Liquidation Price Calculator
Calculate your liquidation price based on leverage, entry price, and margin mode.
Formula
Where P_entry is your entry price, Leverage is your leverage multiplier, and M_maint is the maintenance margin rate (e.g. 0.005 for 0.5%).
In cross margin, your full account balance acts as margin. Quantity = Position Size / Entry Price.
Examples
- Entry Price = $50,000, Leverage = 10×, Margin = $1,000
- Position Size = $1,000 × 10 = $10,000
- Maintenance Margin Rate = 0.5%
- Liq Price = $50,000 × (1 − 1/10 + 0.005) = $50,000 × 0.905
- Liq Price = $45,250
- Entry Price = $3,200, Leverage = 25×, Margin = $500
- Position Size = $500 × 25 = $12,500
- Maintenance Margin Rate = 0.5%
- Liq Price = $3,200 × (1 + 1/25 − 0.005) = $3,200 × 1.035
- Liq Price = $3,312
- Entry Price = $150, Leverage = 5×, Margin = $2,000
- Position Size = $2,000 × 5 = $10,000
- Quantity = $10,000 / $150 = 66.67 SOL
- Maintenance Margin Rate = 0.5%
- Liq Price = $150 − ($2,000 − $10,000 × 0.005) / 66.67
- Liq Price = $150 − $1,950 / 66.67 = $150 − $29.25 = $120.75
Key Concepts
What is a Liquidation Price?
The liquidation price is the price at which your position's losses equal your margin (collateral). When the market reaches this price, the exchange forcefully closes your position to prevent further losses. Higher leverage brings the liquidation price closer to your entry.
What is Isolated Margin?
In isolated margin mode, only the margin you allocate to a specific position is at risk. If your position gets liquidated, you only lose that allocated margin — your remaining account balance is unaffected.
What is Cross Margin?
In cross margin mode, your entire available account balance is used as collateral. This gives your position more room to breathe before liquidation, but puts your full balance at risk if the position is liquidated.
How Leverage Affects Liquidation
Higher leverage means a smaller margin relative to your position size, which brings your liquidation price closer to your entry price. At 100x leverage, even a 1% adverse move can trigger liquidation. Lower leverage provides a wider safety margin.
What is Maintenance Margin?
Maintenance margin is the minimum collateral required to keep a position open. When your margin falls below this threshold, liquidation is triggered. Most exchanges set maintenance margin between 0.4% and 1% of position size.
Partial vs Full Liquidation
Some exchanges use partial liquidation — reducing your position size incrementally instead of closing it entirely. This can save part of your margin, but the remaining position still has the same liquidation price. Check your exchange's liquidation engine docs.
How to Calculate Liquidation Price
The liquidation price is determined by your entry price, leverage, margin mode, and the exchange's maintenance margin requirement. For a long position, the liquidation price is below your entry; for a short position, it's above.
In isolated margin mode, the calculation uses only the margin allocated to the position. The formula accounts for your position size, the maintenance margin rate, and the direction of your trade to determine the exact price at which your remaining margin equals the maintenance requirement.
Understanding your liquidation price before entering a trade is essential for risk management. It helps you determine appropriate position sizes and set stop-loss orders well before the liquidation threshold.
Frequently Asked Questions
Does this calculator account for trading fees?
This calculator provides an estimate based on the standard liquidation formula. In practice, exchanges may deduct trading fees and funding payments from your margin, which can bring the actual liquidation price slightly closer to your entry than what's shown here.
Why is my liquidation price different from what my exchange shows?
Exchanges may use slightly different maintenance margin rates, include additional fees (like insurance fund contributions), or factor in unrealized PnL from other positions in cross margin mode. This calculator uses the standard formula and should be treated as an approximation.
What happens when I get liquidated?
When the mark price reaches your liquidation price, the exchange closes your position automatically. You lose your allocated margin (isolated mode) or potentially your entire account balance (cross margin mode). Some exchanges have partial liquidation mechanisms that reduce your position size incrementally.
How can I avoid getting liquidated?
Use lower leverage, set stop-loss orders above (long) or below (short) your liquidation price, add more margin to your position if the exchange allows it, or reduce your position size. A common rule of thumb is to never risk more than 1-2% of your total portfolio on a single trade.