How the liquidation price is calculated

For an isolated long position, the liquidation price is the entry price moved down by your real buffer. This calculator works it out in three steps:

  • Start with 1/leverage. At 75x that is 1.333% of the entry price.
  • Subtract the maintenance margin rate. The exchange liquidates while that slice of margin is still left, so 0.65% comes off.
  • Subtract fees and funding. Funding paid over your holding period always counts. The opening and closing fee counts when your exchange builds it into the liquidation trigger.

Long: Entry × (1 − Buffer) and Short: Entry × (1 + Buffer), with Buffer = 1/L − MMR − fees − funding. The full guide with a worked example shows each step with numbers, and what a margin buffer is explains the idea behind it.

Frequently asked questions

How is the liquidation price calculated?

For an isolated long: entry price × (1 − 1/leverage + maintenance margin rate), then adjusted for funding and, where your exchange counts it in the trigger, fees. For a short the signs flip.

Does this work for Binance, Bybit, OKX, KuCoin and MEXC?

Yes, and for any other exchange, because you enter your own maintenance margin rate, fee and funding rate. For the five exchanges named there are pages with the fee, funding interval and fee behavior already filled in: Binance, Bybit, OKX, KuCoin and MEXC.

Why is the real buffer smaller than 1/leverage?

Because the exchange liquidates you while the maintenance margin is still left, and because fees and funding are paid out of the same margin. At 75x with a 0.65% maintenance margin rate, the usable distance is about half of 1/75.

Does the calculator support cross margin?

No. It models isolated margin only, because a cross-margin liquidation price depends on your whole account and every other open position. See cross margin vs. isolated margin.