How Finicr calculates liquidation

The one idea behind every formula

A leveraged position is liquidated when its margin balance falls to the maintenance margin. The margin balance is the initial margin plus the position's unrealized profit or loss. Every exchange builds on that condition, and they differ in how they measure the maintenance margin. Finicr solves the condition for the price, so the result is the price at which the two are equal.

• Q is the position size in coins, EP is the entry price and LP is the liquidation price.
• Initial margin (IM) is the position value divided by leverage.
• MMR is the maintenance margin rate. The exchange sets it by position size (tier).
• The maintenance amount (deduction) is the tier constant that keeps margin continuous between tiers.

Binance (USDT-M, isolated margin)

Maintenance margin = position value at the liquidation price x MMR - maintenance amount. Solving for the price gives, for a long, LP = (Q x EP - IM - amount) / (Q x (1 - MMR)), and for a short, LP = (Q x EP + IM + amount) / (Q x (1 + MMR)). Source: Binance, How to Calculate Liquidation Price of USDT-M Futures Contracts.

Check: using the same formula with Binance's published cross-margin example, Finicr reproduces its two answers, 26,316.89 for BTCUSDT and 1,153.26 for ETHUSDT.

Bybit (USDT perpetual, isolated margin)

Bybit's unified-account formula for a long is LP = (EP x Q - EP x Q / leverage - maintenance margin deduction) / (Q - Q x MMR). The estimated fee to close is part of both the initial and the maintenance margin, so it cancels out. Sources: Bybit, Liquidation Price Calculation under Isolated Mode and Bybit, Bankruptcy Price.

Check: Finicr matches the documented formula exactly, and the bankruptcy price example (60,000 at 50x long gives 58,800).

MEXC (USDT-M, isolated margin)

MEXC measures maintenance margin on the entry value: maintenance margin = entry price x size x MMR. For a long, LP = EP - (IM - maintenance margin) / Q. Source: MEXC, FAQ on Liquidation for Futures Trading. MEXC also charges a liquidation fee, which Finicr does not include, so the real trigger can be slightly closer to your entry.

Check: MEXC's own example (1 BTC at 8,000, 25x, MMR 0.5%) gives 7,720, and Finicr shows 7,720.

Generic estimate

For any other exchange, a long uses EP x (1 - 1 / leverage + MMR) and a short uses EP x (1 + 1 / leverage - MMR). It is the same as the MEXC form and is a good approximation for isolated positions in a first tier.

What Finicr does not model

• Tiers. Your tier depends on position size. Enter your tier's rate and maintenance amount from your exchange's own table, which each preset links to. Larger positions usually fall into higher tiers.
• Cross margin, portfolio margin, hedge mode, and several positions sharing one balance.
• The mark price. Exchanges trigger on their mark or fair price, which can differ from the last price.
• Funding paid or received while you hold, trading fees, and liquidation fees.
• Partial liquidation, insurance fund, and auto-deleveraging rules.
• Exchange rule changes. Exchanges update their tiers and formulas, so check anything that matters.

Treat the result as a planning estimate. Your exchange's order ticket is the authority on your actual liquidation price.

How it is tested

The project includes a test suite (run with npm test) that checks the published examples above, plus a property test: for thousands of random positions on every preset, the margin balance at the calculated price equals the maintenance margin. The generic preset is also checked against the calculator Finicr used before presets.

Found a difference?

If your exchange shows a different liquidation price, we want to know. Email support@finicr.site with the exchange, the symbol, entry price, leverage, position size, your tier rate and what the exchange shows. Do not send passwords, API keys or account numbers.