RiskShieldHow to Calculate Your Liquidation Price Before You Trade
Your stop-loss and your liquidation price are two different numbers. Only one of them is guaranteed to trigger.
A stop-loss is an order you place. A liquidation is the exchange force-closing your position because your margin ran out. If liquidation sits closer to entry than your stop-loss, the exchange gets there first.
The isolated margin formula
The maintenance margin rate (MMR) varies slightly by exchange and position tier — 0.5% is a solid working estimate for most major perpetual markets.
Try it yourself
Set your own entry price and drag the leverage — this is a LONG position, isolated margin.
How leverage compresses that distance
Same $65,000 LONG entry, distance from entry to liquidation:
The exact failure mode
Stop-loss vs. liquidation at 50x
The trader planned to lose money at $60,000. The exchange liquidates at $64,025 — long before price ever nears the intended stop.
The fix isn't a tighter stop-loss. It's lower leverage or a smaller position. A stop past liquidation is a leverage problem, not a stop-placement problem.
Where this lives in the app
Every Risk Report compares liquidation price against your stop-loss automatically — a hard warning appears if your stop won't save you. The Leverage Stress Test shows this trade recalculated across five leverage levels at once.