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20x at 60,000: where is each side liquidated? 0.01 BTC, 30 USDT of margin Long Entry 60,000 −4.52% 57,286.43 2,713.57 USDT below Short 62,686.57 +4.48% Entry 60,000 2,686.57 USDT above
20x at 60,000: where iseach side liquidated? 0.01 BTC, 30 USDT of margin Long2,713.57 USDT below Entry 60,000 −4.52% 57,286.43 Short2,686.57 USDT above 62,686.57 +4.48% Entry 60,000

Side, entry, leverage and quantity in. The liquidation price out.

Liquidation price calculator

Work out the exact liquidation price of a long or a short from its entry price, leverage and quantity, and see how far it is from your entry.

CalculatorFree5 min read

Updated . Cryptathon rules checked on .

The liquidation price is the mark price that closes a position. On Cryptathon, a long is liquidated at (entry price − margin ÷ coin quantity) ÷ (1 − 0.5%), but never below 0. A short is liquidated at (entry price + margin ÷ coin quantity) ÷ (1 + 0.5%). A 20x BTC long at 60,000 is liquidated near 57,286.43 USDT.

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How do you use the calculator?

Try it

Pick the side, entry price, leverage and quantity. See the position value, margin, liquidation price before funding, distance from entry and maintenance margin at that price (0.5%).

Enter long or short, the entry price, a whole-number leverage and the coin quantity. The calculator gives the liquidation price before any funding is paid, and how far that is from your entry. After funding, use the position's margin now in the formula in part 2.

It works for an isolated position, like every position on Cryptathon (isolated margin). The margin starts at coin quantity × entry price ÷ leverage, with no fees in it, so the trading fee does not move the result. To see why the price is where it is, read Liquidation.

Worked example

A 20x BTC long

You open a 0.01 BTC long at 60,000 USDT at 20x. Where is it liquidated, and how far is that from your entry?

  1. 1
    Find the position valueCoin quantity times the entry price.
    0.01 × 60,000 = 600 USDT
  2. 2
    Find the marginPosition value divided by leverage.
    600 ÷ 20 = 30 USDT
  3. 3
    Find the margin for each BTCMargin divided by coin quantity.
    30 ÷ 0.01 = 3,000 USDT
  4. 4
    Take it off the entryAt this price the margin left would be 0.
    60,000 − 3,000 = 57,000 USDT
  5. 5
    Divide by 1 − 0.5%This keeps back the maintenance margin.
    57,000 ÷ 0.995 ≈ 57,286.43 USDT
  6. 6
    Find the distance from entryHow far the mark can fall.
    60,000 − 57,286.43 = 2,713.57 USDT
  7. 7
    Read it as a share of the entryAbout 4.52%.
    2,713.57 ÷ 60,000 ≈ 0.0452
  8. 8
    Find the maintenance margin at that price0.5% of the position at the liquidation price.
    0.01 × 57,286.43 × 0.5% ≈ 2.86 USDT

AnswerNear 57,286.43 USDT, 2,713.57 USDT (about 4.52%) below the entry. At that price the margin left is about 2.86 USDT, the same as the maintenance margin.

At the entry, 60,000Margin 30 USDT 30 USDT At the liquidation price, 57,286.43 27.14 lost2.86 2.86 left = maintenance margin: liquidated
At the entry, 60,000 30 USDT margin At the liquidation price 57,286.43 27.14 lost 2.86 left = maintenance margin so the position is liquidated
Figure 1 The 20x BTC long from the example. Between 60,000 and 57,286.43 the 30 USDT margin loses 27.14 USDT. The 2.86 USDT left is the maintenance margin at that price, so the position is liquidated there.

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What is the formula behind it?

On Cryptathon a position is liquidated when margin plus unrealised PnL at the mark price falls to or below the maintenance margin, which is 0.5% × coin quantity × mark price. The liquidation price is the mark price where that happens. A long is liquidated at (entry price − margin ÷ coin quantity) ÷ (1 − 0.5%), but never below 0. A short is liquidated at (entry price + margin ÷ coin quantity) ÷ (1 + 0.5%).

Before any funding, the margin for each coin is the entry price divided by the leverage. So a long is liquidated at entry × (1 − 1 ÷ leverage) ÷ (1 − 0.5%), and a short at entry × (1 + 1 ÷ leverage) ÷ (1 + 0.5%).

Worked example

A 25x ETH short

You open a 0.5 ETH short at 3,000 USDT at 25x. Where is it liquidated?

  1. 1
    Find the position valueCoin quantity times the entry price.
    0.5 × 3,000 = 1,500 USDT
  2. 2
    Find the marginPosition value divided by leverage.
    1,500 ÷ 25 = 60 USDT
  3. 3
    Find the margin for each ETHMargin divided by coin quantity.
    60 ÷ 0.5 = 120 USDT
  4. 4
    Add it to the entryA short loses when the price rises.
    3,000 + 120 = 3,120 USDT
  5. 5
    Divide by 1 + 0.5%This keeps back the maintenance margin.
    3,120 ÷ 1.005 ≈ 3,104.48 USDT

AnswerNear 3,104.48 USDT, 104.48 USDT above the entry. The rule of thumb gives 3,000 × 1.035 = 3,105, a little higher.

Worked example

The same BTC long with the leverage formula

Check the 20x BTC long from part 1 with the shorter formula.

  1. 1
    Find 1 − 1 ÷ leverageThe margin is a twentieth of the entry value.
    1 − 1 ÷ 20 = 0.95
  2. 2
    Apply it to the entryThen divide by 1 − 0.5%.
    60,000 × 0.95 ÷ 0.995 ≈ 57,286.43 USDT

Answer57,286.43 USDT, the same as before. Use this formula only before any funding is paid.

Two things move the liquidation price. Leverage sets the margin, so higher leverage brings it closer to the entry. Funding changes the margin after you open: on Cryptathon funding is paid out of, or into, the position's margin (if a payment is bigger than the margin, the rest comes from your free balance). Funding you pay brings the price closer, and funding you receive moves it away. The trigger uses the mark price, not the last trade, so a single trade far from the mark does not liquidate you.

Worked example

Funding moves the price

Your 20x BTC long from part 1 pays funding while the mark is still 60,000 USDT. At +0.1%, the payment is 0.60 USDT on its 600 USDT value. Where is it liquidated now?

  1. 1
    Find the margin after fundingThe payment comes out of the position's margin.
    30 − 0.60 = 29.40 USDT
  2. 2
    Find the margin for each BTCMargin divided by coin quantity.
    29.40 ÷ 0.01 = 2,940 USDT
  3. 3
    Take it off the entryAt this price the margin left would be 0.
    60,000 − 2,940 = 57,060 USDT
  4. 4
    Divide by 1 − 0.5%The new liquidation price.
    57,060 ÷ 0.995 ≈ 57,346.73 USDT
  5. 5
    Compare it with beforeHow much closer it came.
    57,346.73 − 57,286.43 = 60.30 USDT

AnswerNear 57,346.73 USDT, 60.30 USDT closer to the entry than before the payment.

BTC price, USDT (the entry, 60,000, is far above) 57,400 57,350 57,300 57,250 After paying 0.60 funding ≈ 57,346.73 Before funding ≈ 57,286.43 60.30 closer
BTC price, USDT(the entry, 60,000, is far above) 57,400 57,350 57,300 57,250 After funding ≈ 57,346.73 Before funding ≈ 57,286.43 60.30 closer
Figure 2 The 20x BTC long. Before funding it is liquidated near 57,286.43. After it pays 0.60 USDT of funding from its margin, the liquidation price moves up to about 57,346.73, 60.30 USDT closer.

Common questions

Why is the exact price different from the rule of thumb?

The rule of thumb, room ≈ 1 ÷ leverage − 0.5%, keeps back the maintenance margin at the entry price. The exact formula keeps it back at the liquidation price itself, which is a little different. For a 10x SOL long at 200 USDT the rule of thumb gives 181 and the exact price is 180.90. For a 10x short it is 219 and 218.91.

Do trading fees change the liquidation price?

No. On Cryptathon the position's margin starts at coin quantity × entry price ÷ leverage, with no fees in it. The fee is paid from your free balance, on top of the margin. So a market order and a limit order of the same size, price and leverage have the same liquidation price. Funding is different: it is paid out of, or into, the position's margin, so it moves the liquidation price after you open.

Does cross margin change the liquidation price?

Cryptathon uses isolated margin only, so each position's liquidation price depends on its own margin, entry and quantity. On an exchange that offers cross margin, the liquidation price of one position also depends on your balance and your other positions, so a calculator like this one does not fit. Isolated and cross margin shows the difference with numbers.

What to remember

  1. How do you use the calculator?The calculator uses the margin you open with. Funding changes the margin, and so the liquidation price.
  2. What is the formula behind it?Take the margin per coin off the entry for a long, or add it for a short, then divide by 1 − 0.5% or 1 + 0.5%. Funding changes the margin, so it moves the price.