What is a liquidation price?
On a leveraged crypto futures position, the liquidation price is the level at which the exchange forcibly closes your trade because your margin can no longer cover the loss. On isolated margin, you lose the margin you posted for that position. On some exchanges a liquidation fee is charged on top.
Knowing this price before you enter is basic risk control. Your stop-loss should always sit before the liquidation price, with room to spare, so that you decide when the trade is wrong rather than the exchange.
This calculator gives an estimate for linear, USDT-margined perpetual contracts on isolated margin.
Liquidation price formula
Long: Liq = Entry × (1 − 1/Leverage + MMR)
Short: Liq = Entry × (1 + 1/Leverage − MMR)
MMR is the maintenance margin rate as a decimal (0.5% = 0.005). It is the minimum margin the exchange requires you to keep, as a share of the position value.
In plain words: at 10x, your initial margin is 10% of the position. The exchange liquidates when the loss eats the margin down to the maintenance level, so a long is liquidated after a drop of roughly 10% − 0.5% = 9.5%.
Worked example: BTC long and ETH short
Long BTC at 60,000 with 10x leverage and an MMR of 0.5%:
Liq = 60,000 × (1 − 1/10 + 0.005) = 60,000 × 0.905 = 54,300
A 9.5% drop from entry would trigger liquidation.
Short ETH at 3,000 with 10x leverage and 0.5% MMR:
Liq = 3,000 × (1 + 1/10 − 0.005) = 3,000 × 1.095 = 3,285
Raise the short to 25x and the liquidation moves to 3,000 × (1 + 0.04 − 0.005) = 3,105, just 3.5% above entry.
Leverage vs liquidation distance
BTC entry 60,000, MMR 0.5%:
| Leverage | Long liquidation | Short liquidation | Distance from entry |
|---|---|---|---|
| 2x | 30,300 | 89,700 | 49.5% |
| 3x | 40,300 | 79,700 | 32.8% |
| 5x | 48,300 | 71,700 | 19.5% |
| 10x | 54,300 | 65,700 | 9.5% |
| 20x | 57,300 | 62,700 | 4.5% |
| 50x | 59,100 | 60,900 | 1.5% |
| 100x | 59,700 | 60,300 | 0.5% |
At 50x and above, ordinary noise in Bitcoin can reach the liquidation price within minutes.
Why exchanges show a different number
Treat this result as an approximation. Real liquidation prices differ because exchanges:
- Use tiered maintenance margin. Larger positions fall into higher tiers with higher MMR, which pulls the liquidation price closer to entry. Many exchanges also subtract a maintenance amount per tier.
- Include fees. Opening fees and the estimated closing fee reduce your usable margin.
- Use the mark price, not the last traded price, to trigger liquidation.
- Apply funding payments, which add to or subtract from your margin over time.
- Treat cross margin differently. On cross margin, your whole available balance supports the position, so the liquidation price depends on your total equity and other open trades.
Always check the liquidation price shown on the exchange's order screen before confirming the trade.
How to use this calculator
- Choose long or short.
- Enter the entry price.
- Enter the leverage you plan to use.
- Enter the maintenance margin rate from your exchange's tier table (0.5% is a common entry tier for BTC and ETH).
- Read the estimated liquidation price and the percentage distance from entry.
- Place your stop-loss well before that level.
Keeping liquidation far away
- Size from your stop, not from leverage. The crypto position size calculator gives a quantity based on the amount you are willing to lose.
- Use the lowest leverage that gives you the margin you need. Lower leverage pushes liquidation further away without changing the loss at your stop.
- Watch funding on long holds. Paying funding slowly drains isolated margin; see the funding rate calculator.
- Avoid adding margin to a losing trade just to delay liquidation unless that was part of your plan.
FAQ
What is maintenance margin rate?
It is the minimum margin, as a percentage of the position value, that you must keep to stay open. If your margin falls below that level, the position is liquidated.
Why is my exchange's liquidation price closer to entry?
Most often because of fees and tiered maintenance margin. A large position may sit in a higher tier with a higher MMR than the one you entered.
Can I be liquidated before my stop-loss?
Yes, if your stop is beyond the liquidation price, or if a fast move or gap skips past your stop. Keep a clear buffer between the two.
Does adding margin change the liquidation price?
On isolated margin, adding margin lowers the effective leverage and moves the liquidation price further from entry. This calculator assumes the margin set by the leverage you enter.
Is liquidation the same on cross margin?
No. Cross margin uses your full account balance as collateral, so the liquidation price depends on total equity and all open positions. This calculator covers isolated margin.
Final note
A liquidation price you have calculated is a line you can plan around. Keep it far from your stop, keep leverage modest, and always confirm the exchange's own figure.
Trading leveraged products carries a high risk of loss. Results are estimates; check your broker's contract specifications.