Position Details
$
$
$
10x
Understanding Liquidation
Liquidation occurs when your position loses enough value that your margin can no longer cover the losses. The exchange closes your position to prevent further losses.
Liquidation Price Formula:
Long:
Entry × (1 - 1/Leverage + 0.5%)Short:
Entry × (1 + 1/Leverage - 0.5%)Margin Ratio shows how much of your collateral remains. When it drops below the maintenance margin (typically 0.5%), liquidation triggers.
Risk Levels:
- Low (0-30): Safe margin, far from liquidation
- Medium (30-60): Monitor closely
- High (60-85): Consider reducing position
- Extreme (85-100): Immediate action needed
Pro Tips:
- Lower leverage = more room for price movement
- Set stop-losses above/below liquidation price
- Never use more than you can afford to lose
- Higher leverage amplifies both gains AND losses
