Perpetual Liquidation Price
Liquidation occurs when a leveraged position no longer has enough margin to satisfy the venue’s maintenance requirements. The exact calculation depends on the market and margin model.
Key idea
Higher leverage usually leaves less room for adverse price movement. Always use the venue’s own displayed liquidation estimate for the position you are creating.
In this guide
Related workflow
Perpetuals →Leverage compresses the buffer
With more leverage, less margin supports a larger position. That generally moves the liquidation threshold closer to entry.
Margin model changes the calculation
Adding margin can increase the buffer. Cross and isolated margin treat available collateral differently, so the same position size can have different liquidation behavior.
Use the live venue estimate
Maintenance requirements, fees and market-specific rules affect the real threshold. Treat simple formulas as intuition and the trading venue’s live estimate as the operational number.
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