Does the liquidation price change?

Yes. In cross mode it moves with account equity, other positions' PnL and funding payments; in isolated mode it changes when you add or remove margin or add to the position.

How much do I lose if I get liquidated?

In isolated mode you lose that position's entire margin plus a liquidation fee. In cross mode the loss can far exceed one position's margin and, in extreme cases, consume most of the account balance.

Why is the exchange's liquidation price different from my calculation?

The exchange also counts closing fees, your maintenance margin tier and, in cross mode, other positions' PnL, so its estimate usually sits a little closer to the current price. Treat the exchange's figure as authoritative.

How to Calculate Liquidation Price on USDT Futures: Formulas and Worked Examples

How the liquidation price of USDT-margined futures is calculated: what the maintenance margin rate is, the formulas for isolated and cross margin, how far liquidation sits at 10x, 20x and 50x, and why your stop-loss must always come before liquidation.

2026-10-26

Risk Management and Stop-Loss: Where to Place Stops, Risk-Reward and Avoiding Liquidation Leverage and Margin: Choosing Leverage, Cross vs Isolated, Liquidation Price and Holding Costs

The liquidation price is where your equity falls to the maintenance margin. In isolated mode the distance is roughly 1 ÷ leverage minus the maintenance margin rate; in cross mode it depends on the whole account's equity. You work it out so that your stop-loss always fires first.

When liquidation happens

Exchanges require maintenance margin on every position: maintenance margin = position notional × maintenance margin rate. When the equity of the position (isolated) or of the account (cross) drops below it, liquidation is triggered.

For major USDT perpetuals such as BTC and ETH, the maintenance margin rate in the lowest position tier is usually around 0.4%, rising with position size; check the exchange's risk limit or margin tier page. Liquidation is judged on the mark price rather than the last traded price, which filters out some instant wicks.

Isolated margin formula

Ignoring fees, long liquidation price = entry × (1 − 1 ÷ leverage) ÷ (1 − maintenance margin rate); short liquidation price = entry × (1 + 1 ÷ leverage) ÷ (1 + maintenance margin rate).

With a hypothetical 0.4% maintenance rate and a 100,000 USDT entry: a 10x long liquidates at about 90,361, 9.64% away; 20x at about 95,382, 4.62% away; 50x at about 98,394, only 1.61% away. Doubling leverage roughly halves the distance to liquidation.

Cross margin formula

In cross mode the whole available balance absorbs losses. With a single position, long liquidation price ≈ (position size × entry − account equity) ÷ (position size × (1 − maintenance margin rate)).

Suppose account equity is 1,000 USDT and you buy 0.05 BTC at 100,000 USDT (5,000 USDT notional, effectively 5x). Liquidation sits at about 80,321, roughly 19.7% away. With several positions open, their unrealized PnL pushes this price further away or pulls it closer.

Your stop must come before liquidation

Liquidation means losing that margin plus a liquidation fee, at a price you do not choose. The right setup lets the stop fire first: use the formulas above to confirm liquidation lies beyond your stop, with room left for wicks.

The platform places an exchange-side stop order with every entry, with an initial stop at least 1% away; trades in cross mode so the liquidation price depends on the whole account and stays far from the stop; and checks available balance and a minimum free-balance ratio before entering. The loss on each trade is set by the stop, not by liquidation.

Four ways to lower liquidation risk

First, control notional size, not just the leverage number: liquidation distance depends on how large the notional is relative to account equity. Second, in cross mode keep enough free balance instead of going all in.

Third, keep stops on the exchange so they execute even if your connection or computer goes down. Fourth, never average down a loser: adding size drags both the average entry and the liquidation price toward the current price.

#Liquidation #Margin #Leverage

Does the liquidation price change?: Yes. In cross mode it moves with account equity, other positions' PnL and funding payments; in isolated mode it changes when you add or remove margin or add to the position.
How much do I lose if I get liquidated?: In isolated mode you lose that position's entire margin plus a liquidation fee. In cross mode the loss can far exceed one position's margin and, in extreme cases, consume most of the account balance.
Why is the exchange's liquidation price different from my calculation?: The exchange also counts closing fees, your maintenance margin tier and, in cross mode, other positions' PnL, so its estimate usually sits a little closer to the current price. Treat the exchange's figure as authoritative.