A simplified isolated-margin estimate starts with entry price, leverage, direction and maintenance margin. Real exchanges also use mark price, fee deductions, maintenance tiers, funding and position-specific rules, so the account liquidation price is the final reference.
Transparent formula
Long estimate ≈ entry × (1 − 1/leverage + maintenance margin rate); short estimate ≈ entry × (1 + 1/leverage − maintenance margin rate)
Worked example
A $50,000 long at 10× leverage with 0.5% maintenance margin gives an approximate liquidation price of $45,250. The 9.5% buffer is not a stop-loss plan; liquidation mechanics can move as fees and funding consume margin.
Use this sequence
- Select long or short.
- Enter leverage and maintenance margin.
- Calculate distance from entry.
- Set a stop before liquidation.
Common mistakes
- Using liquidation as a stop-loss.
- Ignoring mark price.
- Using the lowest maintenance tier for a large position.
Verify next
Frequently asked questions
Does cross margin use the same formula?
No. Cross margin can use the wider account balance and other positions, so liquidation depends on account-wide equity.
Why does the exchange show a different number?
Maintenance tiers, fees, funding, mark price and exchange-specific formulas produce differences.
How can liquidation risk be reduced?
Use lower leverage, smaller position size, defined stops and adequate margin buffer.
This page provides calculation and research frameworks, not investment, legal or tax advice.
