Liquidation is a margin condition, not just a percentage move
A perpetual position accumulates unrealized profit or loss. When the exchange-defined margin condition for the account or position reaches its liquidation threshold, its risk engine may reduce or close the position. Higher leverage leaves less initial margin relative to notional and usually shortens the adverse price distance.
This calculator covers one linear, USDT-margined position. In isolated mode its margin is entry notional divided by leverage; in cross mode the wallet balance you enter takes its place. Both solve with one fixed maintenance-margin rate and liquidation-fee reserve.
- A long loses as price falls; a short loses as price rises.
- Maintenance margin is not one universal constant and may be tiered by market and notional.
- An exchange applies the price and precision rules of its own risk engine; this simple model is not a substitute for them.
Simplified isolated-margin formula
Let E be entry price, Q quantity, L leverage, M isolated margin balance, and r the sum of the maintenance-margin rate and liquidation-fee reserve. With no added margin, M = E × Q ÷ L.
The formula solves the point where margin balance plus unrealized P&L equals maintenance margin and the fee reserve calculated at the liquidation estimate. Enter all rates as decimals.
Cross margin: the wallet balance replaces the position's margin
In cross margin the whole balance in the settlement asset absorbs the position's losses. Binance's published liquidation formula uses the wallet balance in cross mode, less the maintenance margin and unrealized PnL of any other positions; with only this position open it is the isolated formula with the margin M replaced by the wallet balance W.
That is why a cross-margin liquidation usually sits further away: the same 10× long of 0.2 BTC, with 3,000 USDT in the account, has a simplified estimate of about 35,193.56 USDT, 29.61% below entry, while the same position in isolated margin with 1,000 USDT has its estimate at 45,248.87 USDT. The price of that room is that a liquidation takes the whole 3,000 USDT rather than 1,000 USDT.
With one position in cross margin, leverage decides only how much margin opening it ties up; it does not move the liquidation price. Changing the same position from 10× to 20× leaves the estimate at 35,193.56 USDT. What moves it is the wallet balance and the size of the position.
- Other open positions move it: their unrealized losses bring liquidation closer and their gains push it away. The tool leaves them out.
- W must at least cover the position's initial margin, or the position cannot be opened.
Why the exchange can show a different value
An exchange may include maintenance tiers, tier deductions, isolated margin changes, unsettled funding, open orders, liquidation handling fees, and price precision. Binance exposes different maintenance rates and deductions by notional bracket; OKX documentation likewise distinguishes account modes and position tiers.
A cross account with several positions, or portfolio margin, cannot be represented by this page's formula: other positions' profit and loss, their maintenance margin, order locks and collateral haircuts all change account-level risk. A cross account holding only this position can be estimated by entering its balance in cross mode.
| Item | This tool | Exchange account model |
|---|---|---|
| Margin mode | Isolated, or cross with one position | Isolated, cross, or portfolio |
| Maintenance margin | One input rate | May use tiers and deductions |
| Other assets and positions | Excluded | May affect cross or portfolio risk |
| Price and rounding | Continuous values | Mark price, tick size, and exchange precision |
Verification order before using the result
Confirm the contract is linear and USDT-margined, then obtain the maintenance rate for that market and notional tier. After calculating, sign in to the exchange and preview the same side, quantity, leverage, and margin mode.
If the values differ, use the exchange account value and check the risk bracket, added margin, open orders, and funding. Do not treat the estimate as a guaranteed stop: gaps, liquidity, and slippage can produce a different fill after a stop triggers.
- Record contract, side, quantity, leverage, margin mode, and checked time.
- Match the maintenance rate to the current notional bracket.
- Treat the signed-in order or position preview as authoritative.
Worked example
Reproducible example: 10× isolated BTCUSDT long
- Input
- Entry E: 50,000 USDT
- Input
- Quantity Q: 0.2 BTC; entry notional: 10,000 USDT
- Input
- Leverage L: 10×; initial margin M: 1,000 USDT
- Input
- Example assumptions: 0.50% maintenance rate plus 0.05% liquidation-fee reserve, so r = 0.0055
- Step 1
- Long estimate = (50,000×0.2−1,000)÷[0.2×(1−0.0055)]
- Step 2
- = 9,000÷0.1989 = 45,248.87 USDT
- Step 3
- Adverse distance = (50,000−45,248.87)÷50,000 = 9.50%
Under these fixed assumptions, the simplified estimate is about 45,248.87 USDT, 9.50% below entry.
The 0.50% and 0.05% rates are reproducible example inputs, not current parameters for any exchange, account, time, or BTCUSDT position. Verify the signed-in risk tier and position page.
Frequently asked questions
Is this the liquidation price my exchange will show?
No. The tool models one isolated linear contract. An exchange may also apply tier deductions, open orders, funding, account balances, mark-price rules, and rounding.
Why can the same 10× leverage produce different values?
Maintenance tiers, liquidation costs, contract specifications, and risk engines differ. A larger position can also enter another tier on the same exchange.
How far apart are cross and isolated liquidation prices?
The difference is the money standing behind the position. Isolated margin uses only the position's own margin; cross margin uses the whole wallet balance, so its liquidation price is usually further away — but a cross liquidation takes the whole balance. Switch modes with the same entry and quantity to compare them directly.
What happens if I add isolated margin?
With other inputs unchanged, added isolated margin generally moves liquidation farther away, but the exchange account model determines the actual value.
Does a stop-loss guarantee I cannot be liquidated?
No. Gaps, poor liquidity, trigger-price settings, or execution delays can move the fill, and very high leverage may reach liquidation first.
Where do I find the maintenance-margin rate?
Use the exchange's current risk-limit or notional-bracket information for the exact market and position size, then verify it in the signed-in account. Do not reuse an old screenshot.
Evidence
Official sources and checks
Each formula and exchange rule links to the official documentation, so you can check it yourself.
USDT isolated liquidation formula and initial/maintenance margin relationship
Recorded: 2026-08-31Isolated versus cross margin and account-model differences
Recorded: 2026-08-31- USDⓈ-M Futures Notional and Leverage Brackets APIBinance Developers
Notional brackets, maintenance rates, and cumulative deductions vary by tier
Recorded: 2026-08-31 Cross margin uses the wallet balance, less other positions' maintenance margin and unrealized PnL
Recorded: 2026-10-07
How this page was produced: Drafted with AI assistance · worked examples and links checked automatically before publishingLast updated