The Liquidation Price Formula
Binance uses the following simplified formula to calculate the liquidation price for USDC-margined futures:
Long Position:
Liq. Price = Entry Price × (1 − 1 / Leverage + Maintenance Margin Rate)
Short Position:
Liq. Price = Entry Price × (1 + 1 / Leverage − Maintenance Margin Rate)
The maintenance margin rate (MMR) varies by position size tier. For most retail positions under 50,000 USDC, the MMR is 0.4%.
⚡ Quick Estimate: For a rough calculation, your liquidation distance is approximately 1 / leverage. At 100x, that's a 1% move. At 10x, it's 10%.
Step-by-Step Calculation
Define the trade
Long 1 BTC on BTCUSDT perpetuals at an entry price of $65,000 with 20x isolated leverage. Position notional = 1 × $65,000 = $65,000. Initial margin (IMR = 1/20 = 5%) = $3,250.
Look up the bracket parameters
On Binance's BTCUSDT tiered margin schedule, a $65,000 notional sits in the lowest bracket. Maintenance Margin Rate (MMR) = 0.40% = 0.004. Maintenance Amount (cum_b) for that bracket = 0 USDT. These values are published in the 'Leverage & Margin' table on the Binance Futures page for each symbol.
Apply the long liquidation formula
Liq Price = (Wallet Balance + Maintenance Amount − Position Size × Entry Price) ÷ (Position Size × (MMR − 1)). Plugging in: (3,250 + 0 − 1 × 65,000) ÷ (1 × (0.004 − 1)) = (−61,750) ÷ (−0.996) ≈ $62,002.
Cross-check with the approximation
The shorthand Entry × (1 − IMR + MMR) = 65,000 × (1 − 0.05 + 0.004) = 65,000 × 0.954 = $62,010 lands within ~$8 of the exact answer because the bracket's Maintenance Amount is zero. The approximation breaks down at higher tiers where Maintenance Amount is non-zero.
Adjust for fees, funding and added margin
Binance's displayed liquidation price excludes future funding payments and trading fees, which gradually pull the liq price closer to entry on a long that pays funding. Adding margin to an isolated position (Wallet Balance ↑) pushes the long liq price down; withdrawing margin pushes it up. Recalculate after every margin change.
This means if BTC drops from $65,000 to $62,010 (a ~4.6% decline), your position gets liquidated and you lose your entire margin. This means if BTC drops from $65,000 to $62,010 (a ~4.6% decline), your position gets liquidated and you lose your entire margin.
Liquidation at 10x vs 50x vs 100x
| Leverage | Liq. Price (approx) | Distance to Liq. | Risk Level |
|---|---|---|---|
| 3x | ~$43,667 | ~32.8% | Moderate |
| 10x | ~$58,500 | ~10% | High |
| 20x | ~$62,010 | ~4.6% | High |
| 50x | ~$63,700 | ~2% | Very High |
| 100x | ~$64,350 | ~1% | Extreme |
| 125x | ~$64,480 | ~0.8% | Maximum |
⚠️ Reality Check: At 100x leverage, a 0.6% price move — which can happen in seconds during volatile markets — wipes out your entire position. BTC regularly moves 2–5% within a single hour. Reality Check: At 100x leverage, a 0.6% price move — which can happen in seconds during volatile markets — wipes out your entire position. BTC regularly moves 2–5% within a single hour.
Binance's Tiered Margin System
| Tier | Position Size (USDC) | Max Leverage | Maint. Margin Rate |
|---|---|---|---|
| 1 | 0 – 50,000 | 125x | 0.40% |
| 2 | 50,000 – 250,000 | 100x | 0.50% |
| 3 | 250,000 – 1,000,000 | 50x | 1.00% |
| 4 | 1,000,000 – 10,000,000 | 20x | 2.50% |
| 5 | > 10,000,000 | 10x | 5.00% |
Key Insight: The higher your position size, the lower your max leverage and the higher the maintenance margin — meaning you get liquidated sooner. This is Binance's way of managing systemic risk. Key Insight: The higher your position size, the lower your max leverage and the higher the maintenance margin — meaning you get liquidated sooner. This is Binance's way of managing systemic risk.
Using Binance's Calculator
Open the Futures order panel
On binance.com/en/futures/BTCUSDT (or your chosen pair), the calculator icon sits in the top-right of the order entry panel, next to the leverage selector. The same calculator is available in the mobile app under the position screen.
Pick the right tab
The calculator has three tabs: PnL (returns a profit/loss given entry, exit and size), Target Price (returns the exit price needed for a target ROE%), and Liquidation Price. They share inputs but solve for different unknowns — make sure you're on the Liquidation Price tab before reading the output.
Match the margin mode to your position
In Isolated mode the calculator asks for entry price, leverage, position size and direction, and computes liq price from the margin allocated to that single position. In Cross mode the input set changes — your full futures wallet balance backs the position, so the displayed liq price moves whenever your wallet balance or other open positions change.
Test margin top-ups before committing
On an isolated long, increasing the assigned margin in the calculator pushes the liq price further below entry; reducing it pulls liq price toward entry. This lets you size a margin add (e.g. 'how much USDT do I need to move liq from $58k to $55k?') before clicking Add Margin on the live position.
Remember what the number excludes
The displayed liquidation price is a snapshot at t=0. It does not include the 0.05% taker fee on close, accumulated funding payments (charged every 8 hours on Binance perpetuals), or any future MMR change if your notional grows into a higher bracket. On a position held for days or weeks, the real liq price drifts — recompute periodically.
Tips to Avoid Liquidation on Binance
Start with 3x–5x leverage until you fully understand how liquidation works.
Use Isolated Margin to limit your loss to the margin assigned to that specific position.
Set Stop-Losses before entering any leveraged position. A stop-loss at 50% of your liquidation distance gives meaningful protection.
Monitor Margin Ratio — keep your margin ratio below 80% at all times.
Always verify your liquidation price using Binance's built-in calculator or our free Liquidation Calculator before confirming any trade.
Liquidation CalculatorFrequently Asked Questions
How do I calculate liquidation price on Binance at 100x leverage? +
Does Binance show liquidation price before I open a trade? +
What is Binance's maintenance margin rate? +
Is the liquidation price different for isolated vs cross margin on Binance? +
Can I change my leverage on Binance after opening a position? +
What happens to my funds after liquidation on Binance? +
Derivatives & Leveraged Products — Important Risk Warning
Derivatives are complex financial instruments that carry a high risk of rapid capital loss. Leveraged trading (futures, perpetual contracts, margin trading, options) can result in losses that exceed your initial investment. The majority of retail investor accounts lose money when trading derivatives.
You should carefully consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money. This content is for educational purposes only and does not constitute financial advice, investment advice, or a recommendation to trade derivatives.
In the European Union, crypto derivatives are classified as financial instruments under MiFID II. Only platforms with appropriate MiFID II authorization may offer these products to EU residents. Regulatory treatment varies by jurisdiction — verify the legal status of derivatives trading in your country before participating.
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