Skip to main content
In our trading system, the liquidation price is the price at which a trader’s position will be liquidated due to insufficient margin. The calculation differs for long and short positions, and depends on your account leverage.

​
Formula Breakdown

We have a minimum margin requirement of 3%, which takes into account trading fee, liquidation fee, and possible market slippage. This means even if you are on a 1x position, you will still see a liquidation price.

​
Key Definitions:

  • maintenanceMarginRate: 0.03 (or 3%) – the minimum margin requirement.
  • accountLeverage: totalPositions / totalBalance – determines the leverage used by the trader.
  • averagePrice: position / positionQuantity – the average entry price for the position.

​
Liquidation Price Formulas

Position TypeFormula
Longmax(averagePrice × (1 - 1/accountLeverage + maintenanceMarginRate), 0)
ShortaveragePrice × (1 + 1/accountLeverage - maintenanceMarginRate)