Short answer
For an isolated long, liquidation ≈ entry × (1 − 1/leverage + maintenance margin rate); for a short, entry × (1 + 1/leverage − maintenance rate). A 10x BTC long opened at 80,731.7 USDT with a 0.4% maintenance rate liquidates near 72,981.5 USDT, about a 9.6% move. The exchange's displayed value is the one that counts.
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Key facts
| Long (isolated) | Entry × (1 − 1/Leverage + MMR) |
| Short (isolated) | Entry × (1 + 1/Leverage − MMR) |
| 10x long from 80,731.7 | ≈ 72,981.5 USDT (−9.6%) |
| 20x long from 80,731.7 | ≈ 77,018.0 USDT (−4.6%) |
| 10x short from 80,731.7 | ≈ 88,481.9 USDT (+9.6%) |
Why does leverage set the liquidation distance?
With isolated margin your margin is roughly 1/leverage of the position. At 10x you post about 10% of the notional, so a move of roughly 10% against you consumes it. The maintenance margin rate (MMR) is a buffer the exchange keeps, which moves liquidation a little closer.
How do I calculate it step by step?
Take a long at 80,731.7 USDT, 10x leverage, MMR 0.4%: 80,731.7 × (1 − 0.10 + 0.004) ≈ 72,981.5 USDT. At 20x the same trade liquidates near 77,018.0 USDT. A 10x short from the same price liquidates near 88,481.9 USDT.
These are approximations. Fees, tiered maintenance margin for large positions and funding payments all shift the real number.
How does cross margin change the result?
In cross mode the whole futures wallet backs the position, so the liquidation price depends on your other positions and balance. Adding funds moves it further away. Losses elsewhere move it closer. Read the exact value the exchange shows before entering.
Is a far liquidation price the same as low risk?
No. Position size and stop placement shape the risk. If a 10x trade is sized so the stop would lose 1% of the account, the planned loss is small. Gaps and slippage can still make the real loss larger than planned. A full-balance position at 2x can lose a large share of the account before liquidation.
How can I keep liquidation far from my stop?
One approach is to place the stop first, then pick leverage low enough that liquidation sits well beyond it. That makes it more likely the stop triggers before liquidation. A wider gap also leaves room for fees, funding and slippage. It does not remove the risk, since fast moves can fill a stop at a worse price.
FAQ
Is the formula exact?
No. Fees, tiered maintenance margin and funding shift it. Use the exchange's displayed value.
Does lower leverage remove liquidation risk?
It moves the price further away, but a large enough move still liquidates.
Why did I get liquidated before price touched my level on the chart?
Liquidation happens when the mark price hits your liquidation price. Charts often show the last traded price, which can differ from the mark price.
Sources
- Binance Futures FAQ
- Binance USDⓈ-M Futures API: general info
- Binance: How to calculate liquidation price of usdⓢ m futures contracts
- Binance: Leverage and margin of usdⓢ m futures
- Binance: Liquidation protocols
Figures change. Check the primary sources below.