Liquidation is a margin threshold
Leverage reduces the price movement a position can absorb before its margin falls to the venue’s maintenance requirement. Higher leverage generally moves the threshold closer to entry.
Long positions are threatened by price decreases; short positions are threatened by increases. The arithmetic is mirrored, but fees and venue mechanics can create asymmetry.
Why a general estimate differs
Venues may use mark price rather than last trade, maintenance tiers, fee reserves, partial liquidation, cross-margin balances, and funding accrual. A transparent general model cannot reproduce all of these rules.
Use the output as a check, not a signal
Compare the estimate with the venue’s displayed liquidation level and risk documentation. It does not recommend opening, closing, or sizing a position.
Put the method into practice
Open the related calculator with your own inputs. Review its formula, source labels, and limitations before comparing the result with a wallet, exchange, contract interface, or provider.
Use Crypto Liquidation Calculator →