How Is the Liquidation Price Calculated?
The liquidation price is calculated based on the position’s entry price, leverage, and the composition of margin (personal vs bonus). When bonus margin is used together with personal margin, the liquidation threshold becomes more sensitive depending on the personal margin ratio.
Step 1) Calculate Personal Margin Ratio
Personal Ratio = Personal Margin ÷ (Personal Margin + Bonus Margin)
Example:
-
Personal Margin: 80 USDT
-
Bonus Margin: 20 USDT
-
Personal Ratio = 80 / (80 + 20) = 0.8 (80%)
Step 2) Calculate Liquidation Distance (Delta)
Liquidation Delta = Entry Price × (Liquidation Factor ÷ Leverage) × Personal Ratio
Example:
-
Entry Price: 50,000 USDT
-
Leverage: 10x
-
Personal Ratio: 0.8
-
Liquidation Delta = 50,000 × (Liquidation Factor / 10) × 0.8
-
Liquidation Delta = X USDT (calculated internally by the platform)
The liquidation factor is an internal risk parameter and is not exposed.
Step 3) Calculate Liquidation Price
-
Long (Buy): Liquidation Price = Entry Price − Liquidation Delta
-
Short (Sell): Liquidation Price = Entry Price + Liquidation Delta
Example (Long):
- Liquidation Price = 50,000 − X
Example (Short):
- Liquidation Price = 50,000 + X
Notes
- The final liquidation price shown in the UI is the source of truth.
- The displayed liquidation price may differ slightly due to rounding, fees, and risk adjustments.
Updated 24 days ago