What Is the Liquidation Price in Crypto Futures?

Liquidation Price is the exact price level at which your Crypto Futures position gets automatically closed because your remaining margin has fallen below the maintenance margin requirement. It's calculated from three inputs specific to your position — entry price, leverage, and the margin allocated to it — so it shifts whenever any of those inputs change, and it's recalculated in real time as you add or remove margin or adjust leverage. Once the market reaches this price, the position closes regardless of your intentions or any order you might be trying to place at that moment; there's no override once the trigger condition is met. Because it's specific to each individual position rather than your account as a whole, two open positions on the same contract can carry two entirely different liquidation prices depending on how each one is margined.

• Liquidation Price moves further away from your entry price as you add more margin, and moves closer as you increase leverage — the two inputs pull it in opposite directions.
• It's tracked against the Mark Price, not the last traded price, so a short-lived spike on a single venue doesn't automatically trigger your liquidation just because it briefly touched your Liquidation Price on the order book.
• Checking your Liquidation Price before opening a position — not after — is the more useful habit, since it tells you upfront how much room the trade has before things go wrong, letting you size the position or leverage accordingly.
• Liquidation Price is specific to each open position and recalculates whenever you adjust margin or leverage on that position, so a position you've been actively managing can carry a very different Liquidation Price than the one it started with.
• The distance between your entry price and your Liquidation Price is effectively your risk buffer — a wider distance means the position can absorb more volatility before liquidation becomes a risk.

Related questions:

Q: What determines my Liquidation Price?
Your entry price, leverage, and the margin allocated to the position — more margin pushes it further away, more leverage pulls it closer. These three inputs are recalculated together every time one of them changes, which is why the same entry price can carry very different Liquidation Prices depending on how the position is set up. No other factor, such as your account history or trading volume, plays any role in the calculation.

Q: Does Liquidation Price change after I open a position?
Yes. It recalculates whenever you add or remove margin, or adjust leverage on that open position, so it isn't fixed at the moment you open the trade. Actively managing a position by topping up margin as the market moves is one of the most direct ways to shift your Liquidation Price further away, giving the trade more room to recover.

Q: Is Liquidation Price the same as the last traded price when liquidation happens?
No. Liquidation is triggered against the Mark Price, a weighted average across major exchanges, not the last traded price, which prevents a brief spike on one venue from forcing a liquidation that a more stable, broader price reference wouldn't justify. The Mark Price and last traded price can diverge slightly during volatile moments, which is exactly when this distinction matters most. Because the chart shows the last traded price, a position can be liquidated before the chart reaches its Liquidation Price (see CFT-TXN-TS-003).

Q: Can I see my Liquidation Price before opening a position?
Yes. Pluang shows an estimated Liquidation Price before you confirm the position so you know your risk buffer in advance, based on the entry price, leverage, and margin you've set, which lets you adjust any of those inputs before committing to the trade. Checking this figure before every new position is a habit worth building regardless of how confident you feel about the trade.

Q: Why do two positions on the same contract have different Liquidation Prices?
Because Liquidation Price depends on each position's own margin and leverage, not just the contract traded. A position with more margin allocated or lower leverage sits further from liquidation than one with less margin or higher leverage on the same pair, even if both were opened at the exact same entry price on the exact same day, since the contract itself carries no fixed Liquidation Price of its own.