Liquidation Price
The price when the position is liquidated.
The liquidation price for a position is calculated based on the entry price and amount of collateral provided. The higher the leverage, the lower the collateral amount, therefore the higher the risk of liquidation.
To prevent your position from getting liquidated ALWAYS USE STOP LOSS orders.
Positions can only be liquidated using the Mark Price (the price from the price source).
When a position is liquidated, the collateral for the position is lost.
Liquidation Price Formula
Definitions
LP
Liquidation Price
NLP
Net Liquidation Price
P
Entry Price
C
Margin Call Coefficient
M
Margin (Collateral)
MOV
Allowed price movement before margin call
FC
Funding Cost
S
Position Size
FB
Funding Blocks (the number of blocks the position is opened for)
FR
Funding Rate (rate per block)
L
Leverage
MM
Maintenance Margin
Formulas
Parameter
Formula
NL
P ± MOV
MOV
(M - FC) / S
FC
S * P * FB * FR
C
MM / L
L
P * S / M
Use Stop-Limit (Stop-Loss) orders to prevent the position from getting liquidated!
Last updated
Was this helpful?