There is no universal crypto liquidation-price formula. Your estimate depends on the exchange, contract type, long or short direction, margin mode, maintenance-margin tier, fees and account balance. Before opening a trade, use the formula or calculator for that exact contract and compare its result with the exchange’s order-entry estimate. Treat the figure as a planning estimate, not a guaranteed trigger price.
How do I calculate my liquidation price before opening a leveraged trade?
Start by identifying the exact contract and margin setup. Then gather the inputs the exchange uses, apply its current formula or calculator, and check the result against the exchange’s displayed estimate. A liquidation price calculated for one venue or contract may not apply to another.
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- Identify the contract: confirm whether it is a linear USDT- or USDC-margined contract or an inverse coin-margined contract, and whether you are opening a long or short.
- Identify the margin mode: determine whether the position uses isolated or cross margin.
- Collect the inputs: note the entry price, position size or notional, leverage or allocated initial margin, any extra margin, maintenance-margin rate and deduction, and fee assumptions. For cross margin, also account for relevant wallet balance, other positions and unrealized P&L.
- Check the maintenance tier: match the position’s notional to the exchange’s current risk-limit tier. If the notional implied by your result belongs to a different tier, recalculate with that tier’s maintenance requirements.
- Use the venue’s current formula or calculator: enter the same contract, margin mode, size and other settings you intend to trade. Binance’s liquidation-protocol guidance points users to its futures calculator.
- Check the trigger price and account state: confirm whether the exchange uses mark price and, for cross margin, whether other account activity can change the displayed estimate.
Why the contract and margin mode change the calculation
| Setup | What changes in the estimate | What to verify |
|---|---|---|
| Linear contract | Uses a linear relationship between contract size and price; the calculation is denominated in the contract’s settlement currency. | Use the exchange’s linear-contract formula for the correct side and margin mode. |
| Inverse contract | Uses contract quantity and value relationships that differ from a linear contract. | Use the exchange’s inverse-contract formula; do not reuse a linear formula. |
| Long versus short | The formula direction and sign treatment differ by position side. | Select the correct long- or short-side calculation. |
| Isolated margin | The position’s allocated margin is a major input. Adding margin can move the estimated liquidation level farther from entry, all else held constant. | Include extra margin and the exchange’s maintenance and fee assumptions. |
| Cross margin | Shared account collateral, unrealized P&L and other positions can affect the estimate. | Check the live account state; a displayed price may be a reference rather than a fixed liquidation threshold. |
Phemex publishes separate liquidation formulas for linear and inverse contracts and for longs and shorts. Bybit likewise documents distinct formulas for USDT and inverse contracts. The contract denomination is not a cosmetic difference: it changes the math.
Bybit isolated linear long formula and example
Bybit’s Unified Trading Account rules publish this formula for an isolated linear long:
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Liquidation Price (Long) = [(Entry Price × Position Size) − (Entry Price × Position Size ÷ Leverage) − (Extra Margin Added ÷ (1 − Taker Fee Rate)) − MM Deduction] ÷ [Position Size − (Position Size × MM Rate)]
In this formula, MM means maintenance margin. Bybit says the maintenance-margin rate is based on the risk-limit tier. The equation is specific to the stated Bybit contract and isolated-long setup; it is not a general formula for shorts, inverse contracts or other exchanges.
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Bybit’s documented example uses a 1 BTC long entered at 40,000 USDT with 50x leverage, 3,000 USDT of extra margin, a 0.5% maintenance rate and a 0.0550% taker fee. Under those assumptions, the stated liquidation price is 36,380.25 USDT. This is an illustration of Bybit’s assumptions, not a universal BTC liquidation price.
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What makes a calculated price differ from an actual liquidation?
Maintenance-margin tiers
Maintenance requirements can rise as position notional increases. Binance defines maintenance margin using notional, the applicable maintenance-margin rate and a tier maintenance amount. Binance also cautions that the selected tier must correspond to the position notional; if the calculated notional conflicts with the assumed tier, the estimate needs to be recalculated using the appropriate tier.
Cross-margin account changes
Cross margin uses shared collateral, so available balance, unrealized profit or loss and maintenance margin for other contracts may affect the estimate. Binance’s USDⓈ-M explanation includes cross-wallet balance, maintenance margin for other contracts and unrealized P&L in its formula definitions. KuCoin’s Help Center page dated July 22, 2026, says cross-margin liquidation occurs when the risk rate reaches 100% and that its displayed cross-margin liquidation price is a reference, not the basis for liquidation.
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Mark price and fast markets
Bybit and Binance state that liquidation is triggered by mark price, which may differ from the last traded price shown on a chart. Bybit’s Help Center wording is: “Liquidation is triggered by the Mark Price, not the Last Traded Price (LTP).” Binance warns that sharp volatility can make an actual liquidation occur at a mark price different from a previously calculated threshold, and that liquidation may involve staged procedures. A last-price chart alone therefore cannot establish whether the liquidation trigger was reached.
Quick Recap
Use the estimate as a planning boundary, not a guarantee
- Use the exact exchange’s current formula, maintenance-tier table and fee assumptions.
- Do not treat leverage alone as enough to calculate liquidation price; position size, margin and maintenance requirements also matter.
- Recheck the estimate if you change size, add or remove margin, or if cross-margin account equity and other positions change.
- Remember that the estimate does not predict the likelihood of liquidation or guarantee the price at which an exchange will close or reduce a position.
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