How to use Liquidation Calculator
Select long or short, then entry, leverage, margin, and maintenance margin rate. Read estimated liquidation price, bankruptcy price, and notional coin size before you open a leveraged position.
Example: 10x long on Bitcoin
You open a long at $40,000 with $1,000 margin at 10x leverage and a 0.5% maintenance margin rate.
- Position size = ($1,000 × 10) ÷ $40,000 = 0.25 BTC ($10,000 notional)
- Liquidation price = $40,000 × (1 − 1/10 + 0.005) = $36,200
- Bankruptcy price = $40,000 × (1 − 1/10) = $36,000
The position is liquidated if price falls about 9.5% to $36,200. This is an isolated-margin approximation; your exchange's tiered margin rates will move the exact number.
Formula & methodology
Size = (margin×leverage)/entry. Long liq ≈ entry×(1−1/lev+MMR). Short liq ≈ entry×(1+1/lev−MMR). Bankruptcy omits the MMR cushion. This is an isolated-margin approximation. Venue mark prices and tiered MMR will differ.
Estimate liquidation price before you open leverage
Leverage amplifies gains and shortens the distance to forced exit. If your invalidation level sits beyond the estimated liquidation price, the size or leverage is too aggressive.
Maintenance margin is an input because exchanges disagree. Conservative traders raise MMR. Aggressive venues advertise lower buffers, then liquidate earlier via insurance logic. Bankruptcy price shows the theoretical zero-equity level for education.
Do not treat this as a substitute for the exchange’s official calculator. Cross-check live prices on our converter, and remember funding can move equity even when spot is flat.
All CryptonicTools utilities are free, mobile-first, and require no account.