The Liquidation Price Formula
Binance uses the following simplified formula to calculate the liquidation price for USDC-margined futures:
Long Position:
Liq. Price = Entry Price × (1 − 1 / Leverage + Maintenance Margin Rate)
Short Position:
Liq. Price = Entry Price × (1 + 1 / Leverage − Maintenance Margin Rate)
The maintenance margin rate (MMR) varies by position size tier. For most retail positions under 50,000 USDC, the MMR is 0.4%.
⚡ Quick Estimate: For a rough calculation, your liquidation distance is approximately 1 / leverage. At 100x, that's a 1% move. At 10x, it's 10%.
Step-by-Step Calculation
Let's calculate the liquidation price for a BTC Long at $65,000 with 20x leverage:
This means if BTC drops from $65,000 to $62,010 (a ~4.6% decline), your position gets liquidated and you lose your entire margin.
Liquidation at 10x vs 50x vs 100x
Here's how leverage dramatically affects your liquidation price (BTC Long at $65,000):
| Leverage | Liq. Price (approx) | Distance to Liq. | Risk Level |
|---|---|---|---|
| 3x | ~$43,593 | ~32.9% | Low |
| 5x | ~$52,260 | ~19.6% | Moderate |
| 10x | ~$58,760 | ~9.6% | High |
| 20x | ~$62,010 | ~4.6% | Very High |
| 50x | ~$63,960 | ~1.6% | Extreme |
| 100x | ~$64,610 | ~0.6% | Maximum |
⚠️ Reality Check: At 100x leverage, a 0.6% price move — which can happen in seconds during volatile markets — wipes out your entire position. BTC regularly moves 2–5% within a single hour.
Try these calculations yourself with our free Liquidation Calculator.
Binance's Tiered Margin System
Binance doesn't use a flat maintenance margin rate. Instead, it uses a tiered system where larger positions require proportionally more margin:
| Tier | Position Size (USDC) | Max Leverage | Maint. Margin Rate |
|---|---|---|---|
| 1 | 0 – 50,000 | 125x | 0.40% |
| 2 | 50,000 – 250,000 | 100x | 0.50% |
| 3 | 250,000 – 1,000,000 | 50x | 1.00% |
| 4 | 1,000,000 – 5,000,000 | 20x | 2.50% |
Key Insight: The higher your position size, the lower your max leverage and the higher the maintenance margin — meaning you get liquidated sooner. This is Binance's way of managing systemic risk.
Using Binance's Built-in Calculator
Binance provides a built-in calculator on the Futures trading page. Here's how to use it:
Open the Binance Futures trading interface and click the calculator icon (🧮) in the order panel.
Select the 'Liquidation Price' tab at the top.
Enter your Entry Price, Leverage, and Margin (USDC).
Choose your position direction: Long or Short.
The calculator displays your estimated liquidation price instantly.
💡 Prefer a standalone tool? Our Liquidation Calculator works the same way but includes PnL calculation and doesn't require a Binance account.
Tips to Avoid Liquidation on Binance
Use Isolated Margin
Limits your loss to the margin assigned to that specific position.
Set Stop-Losses
Close losing trades before they reach the liquidation price.
Start with 3x–5x
Lower leverage gives you much more room for market volatility.
Monitor Margin Ratio
Keep your margin ratio below 80% at all times.
Related Tools & Guides
Calculate exact liquidation prices
Complete beginner's guide
Understand margin call warnings
Compare margin modes
Compare exchange mechanics
Risk management for small accounts
Frequently Asked Questions
How do I calculate liquidation price on Binance at 100x leverage?+
Does Binance show liquidation price before I open a trade?+
What is Binance's maintenance margin rate?+
Is the liquidation price different for isolated vs cross margin on Binance?+
Can I change my leverage on Binance after opening a position?+
What happens to my funds after liquidation on Binance?+
Derivatives & Leveraged Products — Important Risk Warning
Derivatives are complex financial instruments that carry a high risk of rapid capital loss. Leveraged trading (futures, perpetual contracts, margin trading, options) can result in losses that exceed your initial investment. The majority of retail investor accounts lose money when trading derivatives.
You should carefully consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money. This content is for educational purposes only and does not constitute financial advice, investment advice, or a recommendation to trade derivatives.
In the European Union, crypto derivatives are classified as financial instruments under MiFID II. Only platforms with appropriate MiFID II authorization may offer these products to EU residents. Regulatory treatment varies by jurisdiction — verify the legal status of derivatives trading in your country before participating.