Direct answer
Buying 2 ETH at 3,000 USDT at 20x needs only 300.00 USDT of margin, but the simplified liquidation price is 2,865.76 USDT, reached by a 4.47% fall. A 5% rise to 3,150 USDT nets 293.85 USDT (ROE +97.95%); a 4% fall to 2,880 USDT is not yet liquidated but already loses 245.88 USDT (ROE −81.96%). Held seven days at a +0.01% funding rate, fees and funding total 18.60 USDT.
The result first
Assume 2 ETH bought at 3,000 USDT (6,000 USDT of notional) at 20x, isolated, with a 0.50% maintenance rate, a 0.05% liquidation-fee reserve and 0.05% taker fees.
Margin is 300.00 USDT, and the liquidation calculator gives a simplified liquidation price of 2,865.76 USDT, 4.47% away. The same position at 10x liquidates at 2,714.93 USDT (9.50%), and at 5x at 2,413.27 USDT (19.56%).
In the futures PnL calculator: a 5% rise to 3,150 USDT nets 293.85 USDT, ROE +97.95%; a 3% fall to 2,910 USDT loses 185.91 USDT, ROE −61.97%; a 4% fall to 2,880 USDT loses 245.88 USDT, ROE −81.96% — a hair from liquidation.
Margin, liquidation and ROE together
Margin = notional ÷ leverage = 6,000 ÷ 20 = 300 USDT. Simplified liquidation = (3,000 × 2 − 300) ÷ [2 × (1 − 0.0055)] = 5,700 ÷ 1.989 = 2,865.76 USDT.
ROE uses 300 USDT as its denominator, so each 1% of price is roughly 20% of ROE. That is why the numbers swing so fast at 20x: a 5% rise nearly doubles the margin, a 4% fall loses four fifths of it.
At 5x the same trade gains or loses exactly the same USDT (+293.85 or −185.91), with ROE of +24.49% and −15.49% and a liquidation distance of 19.56%. Leverage changes margin and liquidation distance, not the amount won or lost.
Leverage and liquidation
The same 2 ETH long at 3,000 USDT: margin and simplified liquidation price at each leverage.
| Leverage | Margin (USDT) | Simplified liquidation (USDT) | Distance |
|---|---|---|---|
| 5× | 1,200.00 | 2,413.27 | 19.56% |
| 10× | 600.00 | 2,714.93 | 9.50% |
| 20× | 300.00 | 2,865.76 | 4.47% |
| 50× | 120.00 | 2,956.26 | 1.46% |
Gains and losses at 20x
Net PnL and ROE at 20x for several exits; the same position at 5x keeps the USDT result and has a quarter of the ROE.
| Exit (USDT) | Price move | Net PnL (USDT) | ROE at 20x | ROE at 5x |
|---|---|---|---|---|
| 3,150 | +5% | gain 293.85 | +97.95% | +24.49% |
| 2,910 | −3% | loss 185.91 | −61.97% | −15.49% |
| 2,880 | −4% | loss 245.88 | −81.96% | — |
Holding cost, broken down
The trade cost calculator splits the holding cost into three: opening fee 3.00, closing fee 3.00 and funding 12.60 USDT. The closing fee here is estimated on the opening notional; it is really charged on the value at closing, so it differs slightly when the price moves.
| Held | Settlements | Fees (USDT) | Funding (USDT) | Total (USDT) |
|---|---|---|---|---|
| 1 day | 3 | 6.00 | 1.80 | 7.80 |
| 7 days | 21 | 6.00 | 12.60 | 18.60 |
Put the stop before liquidation
At 20x liquidation is 4.47% away. A stop at −3% (2,910 USDT) loses 185.91 USDT with about 1.47 percentage points left before liquidation; a stop beyond −4% all but lets liquidation decide the exit.
If ETH's usual move over your planned hold already exceeds 4%, 20x is too tight. At 10x the distance stretches to 9.50%, giving the same stop enough buffer.
Holding cost: what 7 days costs
In the trade cost calculator — 6,000 USDT of notional, 0.05% taker fees on both trades, +0.01% funding, seven days (21 settlements) — fees are 6.00 USDT and funding 12.60 USDT, 18.60 USDT in all. One day (three settlements) costs 7.80 USDT.
Against 300 USDT of margin, 18.60 USDT is 6.2%: before any price move, a week of holding takes about a sixteenth of the margin. With funding included, the 5% rise nets 281.25 USDT instead of 293.85.
Checks before going 20x
A 4.47% distance can be a single day's move for ETH. Confirm the stop sits beyond liquidation with room to spare — a 3% stop leaves about 1.47 percentage points before liquidation; if the strategy needs 5% or more of room, 20x does not fit.
Before ordering, check ETH's maintenance tiers, mark price, estimated liquidation price and current funding rate on the exchange. DZPTO's figures are like-for-like estimates; the account shows what is executable.
Official sources and calculation boundary
The liquidation estimate follows Binance's USDⓈ-M liquidation documentation, and fees on executed notional follow Binance's fee documentation. The trade cost calculator estimates the closing fee on the opening notional; the +0.01% funding rate and 0.50% maintenance rate are examples.
- Binance: how to calculate the liquidation price of USDⓈ-M futures
- Binance: futures fee structure and fee calculations
Next checks in this series
Frequently asked questions
How far can ETH fall at 20x before liquidation?
With this article's example inputs, the simplified distance is 4.47% — from 3,000 to about 2,865.76 USDT. The real maintenance rate depends on the position tier; trust the exchange's displayed liquidation price.
Does 20x earn the same as 10x?
For the same position size, the USDT gained or lost is identical; 20x posts half the margin, so ROE doubles and the liquidation distance roughly halves.
Do ETH and BTC liquidate at the same distance at equal leverage?
With the same maintenance and fee inputs, yes — 4.47% at 20x here; in practice their tiers and maintenance rates can differ, and so does their volatility.
Can a week's holding cost exceed the fees?
At +0.01%, seven days of funding (12.60 USDT) is already twice the 6.00 USDT of fees; the higher the rate and the longer the hold, the wider the gap.