Isolated liquidation check
How liquidation price is calculated: tiered maintenance margin and deductions
A liquidation price is not entry times a fixed percentage. Larger positions carry higher maintenance rates, and some venues subtract a deduction. Include both and the answer matches the exchange.
An isolated linear perpetual is liquidated when, at the mark price, its margin balance falls to its maintenance margin. Maintenance margin = notional at the liquidation price × that tier's maintenance rate − that tier's deduction (zero on venues without one). Solving gives: long liquidation price = (notional − margin − deduction) ÷ (quantity × (1 − rate)); short liquidation price = (notional + margin + deduction) ÷ (quantity × (1 + rate)).
When is a position liquidated?
This guide covers isolated margin on linear perpetuals settled in USDT or USDC, which is the model this site's liquidation calculator implements. An isolated position's margin balance is the margin posted plus unrealised P&L at the mark price; when it falls to the maintenance margin, the position is liquidated. Binance states that liquidation is calculated from the latest mark price, not the last traded price.
Long margin balance = margin + quantity × (mark price − entry price)
Short margin balance = margin + quantity × (entry price − mark price)
Liquidation when margin balance ≤ maintenance margin
Leverage sets how much margin is posted at entry (notional ÷ leverage). It does not set the maintenance margin: Binance states that maintenance margin is worked out from brackets and is always calculated the same way, whatever leverage is chosen.
Maintenance rates are tiered by position size
Venues split position size into tiers: the larger the position, the higher the maintenance rate and the lower the maximum leverage. The table shows the first three tiers of Bybit's BTCUSDT ladder as collected by this site on 2026-10-04, for illustration only; ladders change, so check the live figures.
| Tier | Notional (USDT) | Maintenance rate | Max leverage | Deduction |
|---|---|---|---|---|
| 1 | 0 – 300,000 | 0.33% | 150x | 0 |
| 2 | 300,000 – 2,000,000 | 0.50% | 100x | 510 |
| 3 | 2,000,000 – 2,600,000 | 0.56% | 90x | 1,710 |
Not every venue bounds its tiers by notional. OKX's public position-tier API bounds them by size in contracts (minSz and maxSz): one BTC-USDT perpetual contract is 0.01 BTC, so the first tier's 1,000 contracts are 10 BTC. Check a ladder's unit before reading it.
The deduction: why some venues subtract an amount
If the whole notional were multiplied by its tier's rate, maintenance margin would jump the moment a position crossed into the next tier. From the table, 300,000 USDT requires 990 at the first tier's rate but 1,500 at the second tier's 0.50%. The deduction is the amount that removes that jump.
Maintenance margin = notional × maintenance rate − deduction
Top of tier 1: 300,000 × 0.33% = 990
Bottom of tier 2: 300,000 × 0.50% − 510 = 990
Hyperliquid documents this recurrence directly: a tier's deduction = the previous tier's deduction + the tier's lower bound × (its rate − the previous tier's rate). Bybit's published deductions satisfy the same arithmetic. Binance, Bybit and Hyperliquid all include a deduction in the formula; OKX's position-tier API carries no deduction field and applies the tier's rate to the whole notional. The venues page lists which model each venue uses.
Do not assume every venue's deduction makes maintenance margin exactly continuous. Use the figures the venue publishes.
Solving for the liquidation price
Set the margin balance equal to the maintenance margin at the liquidation price and solve for the price. Use the rate and deduction of the tier the position is in at the liquidation price, not at entry: as the price moves, so does the notional, and the tier can change. This site's calculator solves each tier and keeps the solution that falls inside that tier's range closest to entry.
Long liquidation price = (notional − margin − deduction) ÷ (quantity × (1 − maintenance rate))
Short liquidation price = (notional + margin + deduction) ÷ (quantity × (1 + maintenance rate))
| Item | Value | Working |
|---|---|---|
| Notional | 400,000 USDT | 5 × 80,000, in tier 2 |
| Margin | 20,000 USDT | 400,000 ÷ 20 |
| Liquidation price | 76,279.40 | (400,000 − 20,000 − 510) ÷ (5 × 0.995) |
| Maintenance margin there | 1,396.98 USDT | equal to the margin balance at that price |
The same short liquidates at 83,683.58. Neither figure includes closing fees or funding paid while the position is open; both bring real liquidation slightly closer than this price.
Why the common formula is off by tens to hundreds of USDT
The estimate most often quoted is: long liquidation ≈ entry × (1 − 1 ÷ leverage + maintenance rate). It uses one fixed rate and no deduction. For the position above, the methods give:
| Method | Liquidation price | Versus the ladder |
|---|---|---|
| Ladder with deduction (matches the venue) | 76,279.40 | — |
| Same ladder, deduction ignored | 76,381.91 | 102.51 higher |
| Common formula at the entry tier's 0.50% | 76,400.00 | 120.60 higher |
| Common formula at tier 1's 0.33% | 76,264.00 | 15.40 lower |
The first two errors make liquidation look earlier than it is. The last is the dangerous one: it puts the price further from entry than the real one, so the position looks safer than it is. Larger positions sit in higher tiers, where the gap is usually wider.
At the same leverage, a larger position liquidates closer
At equal leverage, a larger position sits in a tier with a higher rate, so its liquidation price is closer to entry. On the ladder above, a 20x long of 1 BTC (tier 1) liquidates at 76,251.63 and a 20x long of 5 BTC (tier 2) at 76,279.40, 27.77 closer. Maximum leverage falls with the tier too: tier 2 allows at most 100x, so a position that large can no longer be opened at tier 1's 150x.
What this calculation leaves out
- Closing and liquidation fees: venues may charge them, which brings liquidation earlier.
- Funding while the position is open: it is paid from or into margin and changes the balance.
- Cross, unified and portfolio margin: other positions' P&L affects liquidation, so the isolated formula does not apply.
- Mark versus traded price: liquidation is judged on the mark price, which trades may have passed or not yet reached.
- Partial liquidation and risk-limit reduction: some venues reduce a position's tier or close it in stages before this price.
- Inverse (coin-margined) contracts: P&L is in the base asset, and these formulas do not apply.
Common questions
Does higher leverage mean a higher maintenance rate?
No. The maintenance rate is set by the tier the position size falls in, not by the leverage chosen. Leverage only sets how much margin is posted: higher leverage means less margin and a liquidation price closer to entry.
What is a maintenance margin deduction?
A fixed amount some venues subtract from notional × maintenance rate, so maintenance margin does not jump when a position crosses into the next tier. Binance, Bybit and Hyperliquid use one; venues without it apply the tier's rate to the whole notional.
Why does my liquidation price differ from the exchange's?
Common causes: a single fixed maintenance rate or an ignored deduction; the entry tier used instead of the tier at the liquidation price; added margin left out; or cross margin, where other positions count. The exchange's figure also moves as funding and fees are paid.
Is liquidation triggered by the last traded price or the mark price?
The mark price. Binance states that liquidation is calculated from the latest mark price, which keeps a single anomalous trade from triggering it.
Are larger positions liquidated more easily?
Yes. A larger position sits in a tier with a higher maintenance rate, so at the same leverage its liquidation price is closer to entry, and the maximum leverage available is lower.
Official sources and scope
These sources support the venue rules explained here. Worked numbers are our calculations under stated assumptions, not venue quotes. Rules can change; the specific contract and account settlement record take precedence.