What is the liquidation price?
The liquidation of the contract is based on the margin rate. When the contract position has a margin rate ≤ 100%, it will trigger a margin call or a forced liquidation.
Calculation of Liquidation Price
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Accordingly,
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Margin rate <= 100% to trigger a liquidation
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Cross margin rate = (Equity + ∑Profit)/ ∑(Maintenance Margin+Fees)
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Isolated margin rate = (Margin + Profit)/ (Maintenance Margin+Fees), then
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Under Isolated margin mode,
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USDT margin contracts:
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Long position: Liquidation Price = (Margin - |Position| * Avg. Open Price) / ( |Position|* (Maintenance Margin Rate + Liquidation Fee Rate - 1))
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Short position: Liquidation Price = (Margin + |Position| * Avg. Open Price) / ( |Position| * (Maintenance Margin Rate + Liquidation Fee Rate + 1))
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Under Cross margin mode：
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Individual position, USDT margin contracts:
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Long position: Liquidation Price = (Equity - |Position| * Avg. Open Price) / ( |Position|* (Maintenance Margin Rate + Liquidation Fee Rate - 1))
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Short position: Liquidation Price = (Equity + |Position| * Avg. Open Price) / ( |Position| * (Maintenance Margin Rate + Liquidation Fee Rate + 1))
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Multiple positions, USDT margin contracts:（for reference only as lack of the liquidation price of multiple positions）
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Long position: Est. Liquidation Price = (Equity +∑(Profit_n - Fee_n - Maintenance Margin_n)- |Positions| * Avg. Open Price) / ( |Positions|* (Maintenance Margin Rate + Liquidation Fee Rate - 1))
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Short position: Est. Liquidation Price = (Equity +∑(Profit_n - Fee_n - Maintenance Margin_n) + |Positions| * Avg. Open Price) / ( |Positions| * (Maintenance Margin Rate + Liquidation Fee Rate + 1))
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