Liquidations occur when the market goes against you. When you enter into a position, if the market goes against you and drops below your maintenance margin, you are liquidated and your entire initial margin is lost.
The Liquidation price when long is calculated by the following formula:
The Liquidation price when long = EntryPrice - (EntryPrice * MaintenanceMargin) / Leverage
- The Maintenance Margin Rate for Bitcoin is 50% of your Initial Margin.
For long positions, the liquidation price is roundest up to the nearest dollar ($) when applicable.
The Liquidation price when short is calculated by the following formula:
The Liquidation price when long = EntryPrice + (EntryPrice * MaintenanceMargin) / Leverage
- The Maintenance Margin Rate for Bitcoin is 50% of your Initial Margin
For short positions, the liquidation price is roundest down to the nearest Dollar ($) when applicable.
