How liquidation price is estimated

Maintenance Margin · Mark Price

Liquidation begins when account equity no longer satisfies a venue's maintenance-margin rules. Any simple formula is only an estimate because brackets, fees, mark price, position mode, and cross-margin balances differ by venue.

In this guide
  1. 01The liquidation trigger
  2. 02Why calculator outputs differ
01

The liquidation trigger

Leverage reduces initial margin but does not change the asset's volatility. A smaller adverse price move can consume the available margin.

Most venues use mark price rather than the last trade to reduce manipulation, but the exact trigger and liquidation process are venue-specific.

02

Why calculator outputs differ

Maintenance-margin tiers, accumulated funding, liquidation fees, other positions, and added collateral all move the effective threshold.

Use the calculator for planning, then verify the live estimate shown by the venue before entering a position.

Frequently asked questions

QIs the calculator price exact?

No. The exchange's current risk engine and account state are authoritative.

QDoes isolated margin remove all other risk?

It limits allocated collateral but does not prevent slippage, gaps, or loss of that margin.

Open the live tool

Open the liquidation calculator

K