How to Calculate Liquidation Price in Crypto Futures

Bottom line: liquidation price is estimated from entry price, leverage, position direction, and maintenance margin rate. Isolated margin can be approximated with a formula; cross margin should be checked with the live exchange estimate.

~12 min read · Updated April 2026

1. What Is Liquidation in Crypto Futures?
2. The Liquidation Price Formula
3. Exchange Differences: Binance vs Bybit vs OKX
4. Isolated vs Cross Margin
5. Using Liquidation Price to Set Stop-Losses
6. Common Mistakes

Quick answer

For isolated long positions, use Entry x (1 - 1/Leverage + MMR). For isolated shorts, use Entry x (1 + 1/Leverage - MMR).

Formula example	$65,000 BTC long at 10x with 0.4% MMR estimates liquidation near $58,760
Sources	Exchange-style maintenance margin logic for Binance, Bybit, and OKX planning examples
Limit	Fees, funding, mark price, account equity, and risk tiers can change the real liquidation level
Last updated	June 2026

1. What Is Liquidation in Crypto Futures?

Liquidation is the forced closure of a leveraged position when margin drops below the exchange's maintenance requirement. In plain terms: the market moved against you, and the exchange closed the trade to stop losses from growing further.

The liquidation price depends on three things: entry price, leverage, and maintenance margin rate. Those three inputs are enough for a practical estimate on most futures platforms.

2. The Liquidation Price Formula

Maintenance margin rate is the minimum collateral percentage your position must keep. Initial margin is your position size divided by leverage.

For a long: Entry × (1 − Initial Margin Rate + MMR)

For a short: Entry × (1 + Initial Margin Rate − MMR)

Example: a $65,000 BTC long at 10x leverage with 0.4% MMR liquidates around $58,760.

Calculate Your Liquidation Price Instantly

Skip the manual math. Enter your entry price, leverage, and margin mode to see your exact liquidation price.

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3. Exchange Differences

Different exchanges use different maintenance margin rates, so the same trade can liquidate at different prices.

Binance, Bybit, and OKX are not interchangeable. Always check the exact contract and margin tier on the exchange you are using.

For exchange-specific search intent, use the Binance liquidation calculator for Binance futures short-position examples and the Bybit liquidation calculator for cross margin USDT perpetual scenarios.

4. Isolated vs Cross Margin

Isolated margin caps the loss to one position. Cross margin can use your whole account to support a position, which is riskier but may delay liquidation.

The formula above is easiest to use for isolated positions. Cross margin needs the exchange's live estimate because it changes as account equity moves.

5. Using Liquidation Price to Set Stop-Losses

Use liquidation as the worst-case boundary, not the exit plan. Stop-losses should sit well before liquidation so slippage does not push you into a forced close.

Use our Position Size Calculator to size the trade so your stop remains comfortably ahead of liquidation. If you are still deciding whether the wallet or exchange setup itself is safe, start with our wallet safety overview.

6. Common Mistakes

Do not ignore funding fees, assume every exchange uses the same maintenance margin, or forget to recalculate after adding margin. Liquidation is triggered by mark price, not last price.

Calculate Your Exact Liquidation Price

Enter your entry price, leverage, and exchange to see your liquidation price instantly. Supports Binance, Bybit, and OKX.

Open Liquidation Calculator →

Frequently Asked Questions

How is liquidation price calculated for long vs short positions?

For a long position, liquidation price = Entry Price × (1 − Initial Margin Rate + Maintenance Margin Rate). For a short position, liquidation price = Entry Price × (1 + Initial Margin Rate − Maintenance Margin Rate). The key difference is the direction: longs get liquidated when price falls, shorts when price rises. At 10x leverage with 0.4% MMR, a long at $65,000 liquidates around $58,760, while a short at $65,000 liquidates around $71,760.

What is maintenance margin rate and why does it vary by exchange?

Maintenance Margin Rate (MMR) is the minimum percentage of your position value that must remain as margin. If your margin drops to this level, liquidation occurs. Different exchanges set different MMRs: Binance typically uses 0.4% for BTC, Bybit uses 0.5%, and OKX uses 0.3%. Lower MMR means your liquidation price is farther from your entry, giving you more breathing room. Always check your specific exchange and trading pair, as MMR can vary by asset and leverage tier.

Can adding margin move my liquidation price further away?

Yes. Adding margin increases your position's total collateral without increasing its size, which lowers your effective leverage and pushes the liquidation price farther from your entry. For example, if you have a $10,000 position at 10x leverage with $1,000 margin, adding another $500 margin effectively reduces your leverage to 6.67x and moves your liquidation price lower (for longs) or higher (for shorts). Most exchanges allow you to add margin to isolated positions at any time.

What happens when my position gets liquidated?

When your position reaches liquidation price, the exchange automatically closes it at market price. Your remaining margin is used to cover any losses. If the market is volatile, the liquidation may occur at a worse price than your liquidation threshold, resulting in a small residual loss. Some exchanges have insurance funds that cover these gaps, but not always. After liquidation, you lose your entire initial margin for that position. The key is to use stop-losses well before liquidation to preserve capital.

How do funding fees affect my liquidation risk?

Funding fees are periodic payments between long and short traders on perpetual futures. If you are holding a long position and funding rates are strongly positive, you pay funding fees every 8 hours. These fees are deducted from your margin, gradually pushing you closer to liquidation even if the price does not move. At extreme funding rates (e.g., 0.1% per 8 hours), you lose 0.3% of your position value daily just from funding. Use our Funding Rate Calculator to see exactly how much funding will cost you over time.