Simplified isolated-margin estimate. Actual liquidation depends on fees, funding, margin mode (cross vs. isolated), added margin, and your exchange’s exact formula and maintenance-margin tiers. This is educational, not financial advice.
How it works
Leverage sets your initial margin as a fraction of position value (1 ÷ leverage). You are liquidated when losses eat that margin down to the maintenance level. So a long is liquidated near entry × (1 − 1/leverage + maintenance margin) and a short near entry × (1 + 1/leverage − maintenance margin). The higher the leverage, the smaller the move it takes to get there — which is why perpetual futures reward respect for position size.
Worked example. Go long at an entry of 100 with 10× leverage and a 0.5% maintenance margin. Initial margin is 1 ÷ 10 = 10% of the position, so the liquidation sits near 100 × (1 − 0.10 + 0.005) = 90.5 — a fall of about 9.5% from entry. Halve the leverage to 5× and that cushion roughly doubles to ~19.5%; double it to 20× and it shrinks to ~4.5%. The maintenance margin is the small extra buffer the exchange keeps, so the real liquidation is always a touch closer than the leverage alone implies.
FAQ
How is liquidation price calculated?
For an isolated-margin perpetual, a long is liquidated roughly at entry × (1 − 1/leverage + maintenance margin rate), and a short at entry × (1 + 1/leverage − maintenance margin rate). Higher leverage shrinks 1/leverage, pulling the liquidation price closer to entry.
What is the maintenance margin rate?
The minimum equity, as a fraction of position value, you must keep to avoid liquidation. It varies by exchange and by position size (often 0.4%–1% for liquid majors, higher for smaller markets). Enter your venue’s figure for a closer estimate.
Does higher leverage move the liquidation price closer?
Yes. At 5× leverage a long can fall roughly 20% before liquidation; at 20× only about 5%. More leverage means a smaller adverse move wipes the position — the core risk of leveraged perpetuals.
What is the difference between cross and isolated margin liquidation?
In isolated margin, only the margin assigned to that position backs it, so the liquidation price is fixed by this trade alone — which is what this calculator estimates. In cross margin, your whole account balance backs the position, so it can survive a deeper move, but a liquidation can draw down (and cascade across) your other positions. Cross pushes the liquidation further away at the cost of putting more of the account at risk.
Does adding margin change my liquidation price?
Yes. Topping up margin on an isolated position lowers effective leverage and moves the liquidation price further from entry; reducing margin does the opposite. Realized funding payments and fees also nudge it over time. Re-run the estimate with your current effective leverage after any change.
Learn the concepts
Liquidation is where leverage and liquidity meet. Read how perpetual futures work for the margin mechanics, liquidity in trading for why thin books make stops and liquidations slip further than the formula suggests, and Hyperliquid liquidations for how cascades unfold on-venue. To watch crowding build before a squeeze, scan funding across the map.