This article explains the Liquidation Price calculation logic (reference formulas) in futures trading, covering both Cross Margin Mode and Isolated Margin Mode.
⚠️The formulas in this article are provided for reference purposes only.
Actual liquidation prices may vary depending on system calculations, market conditions, and internal risk parameters.
🔍 What is Liquidation Price?
The liquidation price is the price level at which a position will be forcefully closed (liquidated) when the margin is no longer sufficient to maintain the position.
🟢 Cross Margin Mode – Liquidation Price (Reference Formula)
In Cross Margin Mode, margin is shared across the entire account.
Therefore, liquidation price is affected by:
✅ Cross margin balance
✅ Available balance
✅ Unrealized Cross PnL
✅ Maintenance margin
✅ Position size
■ When Unrealized Cross PnL ≥ 0
📉 Long Position
LP = MAX(0,
Entry Price − (Cross Margin + Available Balance + Unrealized Cross PnL − Maintenance Margin) ÷ Amount
)
📈 Short Position
LP = MAX(0,
Entry Price + (Cross Margin + Available Balance + Unrealized Cross PnL − Maintenance Margin) ÷ Amount
)
■ When Unrealized Cross PnL < 0
📉 Long Position
LP = MAX(0,
Mark Price − (Cross Margin + Available Balance + Unrealized Cross PnL − Maintenance Margin) ÷ Amount
)
📈 Short Position
LP = MAX(0,
Mark Price + (Cross Margin + Available Balance + Unrealized Cross PnL − Maintenance Margin) ÷ Amount
)
🔵 Isolated Margin Mode – Liquidation Price (Conceptual Reference)
In Isolated Margin Mode, margin is allocated separately for each position.
Liquidation price mainly depends on:
✅ Margin allocated to the position
✅ Position size
✅ Entry price
✅ Maintenance margin rate
✅ Mark price
■ Isolated Margin (Conceptual Formula)
📉 Long Position
Liquidation Price ≈
Entry Price − (Isolated Margin − Maintenance Margin) ÷ Position Size
📈 Short Position
Liquidation Price ≈
Entry Price + (Isolated Margin − Maintenance Margin) ÷ Position Size
※ In actual trading, mark price, fees, and funding fees may also affect liquidation price.
📊 Cross vs Isolated – Liquidation Price Concept
| Item | Cross Margin | Isolated Margin |
| Margin Usage | Shared across account | Per position |
| Impact from Other Positions | Yes | No |
| Liquidation Factors | Account-wide status | Position-specific |
| Risk Scope | Entire account | Individual position |
⚠️ Important Notes
• Liquidation price changes in real time
• Higher leverage increases liquidation risk
• In Cross Margin Mode, other positions may affect liquidation price
💡 Risk Management Tips
Please regularly monitor:
✅ Margin balance
✅ Unrealized PnL
✅ Liquidation price
✅ Leverage level
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