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Liquidation price calculator
Using BTC at its current mark of $62,628.00, with the maintenance-margin tiers published for this contract. Change any field to recalculate.
The correct liquidation price is higher than the common formula reports, so the position closes sooner than that formula suggests — by $713.48 here.
Why the common formula is wrong
Nearly every liquidation calculator that ranks for this term computes entry × (1 ∓ 1/leverage).
That solves for the price at which equity reaches zero. Positions are not closed at zero equity —
they close when equity falls to the maintenance margin, a positive fraction of notional.
The formula also treats max leverage as a constant, when it steps down as position size grows.
Maintenance margin here is half the initial margin at the tier's max leverage, so the maintenance fraction is
1 / (2 × maxLeverage) for the tier that applies at your notional. Solving for equity = maintenance
gives entry × (1 ∓ 1/L) / (1 ∓ mmf). The common formula is the special case where that fraction is zero.
Margin tiers for BTC
Contract table 56 — tiered 40x.
Your notional is $31,314, in tier 1.
The next tier starts at $150.00M, where max leverage drops to 20× and the error roughly doubles.
| Tier | Notional from | Max leverage | Maintenance margin |
|---|---|---|---|
| 1 · yours | $0 | 40× | 1.250% |
| 2 | $150.00M | 20× | 2.500% |