Liquidation Price

Note: The calculator on the trading page can quickly and accurately calculate the liquidation price!

Calculation of liquidation price

Because of the conditions of liquidation, when liquidation occurs, only the maintenance margin and fee remain for the equity of the position.

It can also be seen that when a liquidation occurs, the 'margin rate' of the position is only enough to (maintenance margin rate + liquidation fee rate).

To understand the judgment of liquidation and maintenance margin.

Assuming that the position equity at this time is E, the position is P, the position quantity is Q, the current mark price is MP, the current tiered maintenance margin rate is MMR, the liquidation fee rate is Fee, and the liquidation price is X, then there is:

Current equity - loss from now to liquidation = maintenance margin + fee

E - P * (MP - X) = (MMR + Fee) * Q * X

If it is a cross position, the maintenance margin required by other positions should be subtracted:

Current equity - loss from now to liquidation - maintenance margin and commission fee of other positions = maintenance margin of this position + fee

E - P * (MP - X) - SUM((MMR_n + Fee_n) * Q_n * MP_n) = (MMR + Fee) * Q * X

Solve X to get the liquidation price calculation formula!

The difference between the position P and the position quantity Q is that P has a direction, the long position is Q, and the short position is -Q!

Liquidation price formula

USDⓈ-M

Isolated Position

Long Position

Liquidation price = (isolated equity - position quantity * mark price) / ((maintenance margin rate + fee rate - 1) * position quantity )

Short Position

Liquidation price = (isolated equity + position quantity * mark price) / ((maintenance margin rate + fee rate + 1) * position quantity )

Cross Position

Note: When there are multiple positions in the cross position, the forced liquidation price will be affected by the profit and loss of other positions, thus changing from time to time.

Long Position

Liquidation price = (total cross equity - position quantity * mark price - SUM other cross margin contracts (position quantity * mark price * (maintenance margin rate + fee rate)) / ((maintenance margin rate + fee rate - 1 )*position quantity)

Short Position

Liquidation price = (total position equity + position quantity * mark price - SUM other cross margin contract (position quantity * mark price * (maintenance margin rate + fee rate)) / ((maintenance margin rate + fee rate + 1 )*positions quantity)

Coin-M

Isolated Position

Long Position

Liquidation price = ((maintenance margin rate + fee rate + 1) * position quantity) / (isolated equity + position quantity * mark price)

Short Position

Liquidation price = ((maintenance margin rate + fee rate - 1) * position quantity) / (isolated equity - position quantity * mark price)

Cross Position

Note: When there are multiple positions in the cross position, the forced liquidation price will be affected by the profit and loss of other positions, thus changing from time to time.

Long Position

Liquidation price = ((maintenance margin rate + commission rate + 1) * position quantity) / (total cross equity + position quantity / mark price - (maintenance margin rate + fee rate) * SUM other cross contracts (position quantity / mark price))

Short Position

Liquidation price = ((maintenance margin rate + commission rate - 1) * position quantity) / (total cross equity + position quantity / mark price - (maintenance margin rate + fee rate) * SUM other cross contracts (position quantity / mark price))

If the calculated liquidation price is a negative number, it means that the position will not be forced to liquidate!

The maintenance margin rate is the maintenance margin rate of the position where the position nominal value (position quantity * mark price) is located.

Fee = Max (taker fee rate, maker fee rate)