BCBetter Calculators

Crypto Liquidation Price Calculator

Calculate the liquidation price for a leveraged crypto position.

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Enter your values and click Calculate

How It Works

Initial Margin Rate = 1 ÷ Leverage. 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). Distance to Liquidation = |Liquidation Price − Entry Price| ÷ Entry Price × 100. Worked example — long BTC at $65,000 with 10x leverage and 0.5% maintenance margin. Initial Margin Rate = 1 ÷ 10 = 0.10. Liquidation Price = $65,000 × (1 − 0.10 + 0.005) = $65,000 × 0.905 = $58,825. Distance = |$58,825 − $65,000| ÷ $65,000 × 100 = 9.5%. For a short at the same entry with 10x leverage: Liquidation Price = $65,000 × (1 + 0.10 − 0.005) = $65,000 × 1.095 = $71,175. These formulas model isolated margin, where only the funds allocated to this position are at risk. Cross-margin accounts draw on the entire account balance to prevent liquidation, providing more buffer but exposing greater capital to simultaneous losses across multiple positions.

Examples

10x Long BTC
Long BTC at $65,000 with 10x leverage and 0.5% maintenance margin.
Result: Liquidation at $58,825 — 9.5% below entry. A $6,175 drop triggers liquidation.
5x Short ETH
Short ETH at $3,500 with 5x leverage and 0.5% maintenance margin.
Result: Liquidation at $4,182.50 — 19.5% above entry. Lower leverage gives substantial room before liquidation.
20x High-Leverage Long
Long BTC at $65,000 with 20x leverage — a common aggressive retail setup.
Result: Liquidation at $62,075 — just 4.5% below entry. Normal intraday volatility can trigger liquidation at this leverage.

Frequently Asked Questions

What is crypto liquidation?
Liquidation is the automatic force-closure of a leveraged position by the exchange when your margin balance falls below the maintenance margin threshold. When you open a leveraged position, you deposit an initial margin as collateral. If the market moves against your position and unrealized losses consume most of that collateral, the exchange closes the position to prevent your account from going negative. On most exchanges you receive a margin call warning before liquidation, but in fast-moving crypto markets prices can move through both levels simultaneously.
How can I avoid liquidation?
The most effective methods are using lower leverage, placing a stop-loss order above your liquidation price, and adding more margin if the position moves against you. Stop-losses close your position at a predetermined level before losses reach the liquidation point, preserving capital for future trades. Many traders also use strict position sizing rules — never risking more than 1–2% of total capital on a single trade — so that even a full liquidation does not meaningfully damage the overall account.
Is the liquidation price the same on all exchanges?
No — Binance, Bybit, OKX, Kraken, and other exchanges each use slightly different maintenance margin schedules and liquidation formulas. Larger positions often face higher maintenance margin requirements through tiered systems where the rate increases with position size. Always check your specific exchange's liquidation calculator or risk parameter page before entering a leveraged position. This tool provides a useful estimate based on the standard isolated margin formula, but should not replace your exchange's own precision calculation.

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