Crypto Liquidation Calculator
Trading 100x leverage on Binance or Bybit? Calculate the exact isolated margin price where the exchange's liquidation engine will forcibly close your position.
Complete Guide to Crypto Liquidation (Binance, Bybit, OKX)
Initial Margin vs. Maintenance Margin (MMR)
To understand liquidation, you must understand the two types of margin. Initial Margin is the minimum amount of collateral (cash) you need in your account to open the position. Maintenance Margin is the minimum amount of collateral you need to keep the position open. If your Initial Margin drops below this threshold (due to floating losses), the liquidation engine takes over.
Why Liquidation Price is NOT Bankruptcy Price
Many traders assume they get liquidated when their margin hits exactly $0.00 (the Bankruptcy Price). This is false. You are liquidated slightly before you go bankrupt, at the Maintenance Margin threshold. The exchange uses the remaining funds to pay liquidation penalties and fill the exchange's 'Insurance Fund.' This is why getting liquidated on Bybit or Binance is so punishing.
Isolated vs. Cross Margin
This calculator uses Isolated Margin math. In Isolated Margin, your liquidation price is fixed and only the margin allocated to that specific trade is at risk. If you use Cross Margin, the exchange will pull available funds from your entire wallet balance to push your liquidation price further away, risking your entire portfolio on one bad trade.
Frequently Asked Questions
How is crypto liquidation price calculated?
For a long position, Liquidation Price = Entry Price - ((Initial Margin - Maintenance Margin) / Position Size). This formula applies to linear USDT perpetual contracts on major exchanges like Binance and Bybit.
What is the Maintenance Margin Rate (MMR)?
The MMR is a percentage (usually 0.40% to 0.50% for major coins like BTC) set by the exchange. If your account equity falls below this percentage of your total position's notional value, your position is forcefully closed.
How can I avoid getting liquidated in crypto?
The easiest way to avoid liquidation is to use lower leverage (e.g., 3x to 5x instead of 50x to 100x), and to always use a hard Stop Loss order placed above your calculated liquidation price.