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Calculation of Liquidation Price
Gate.io
Updated at:50 days 14 hours ago
A position will be liquidated when the balance of position margin is lower than the maintenance margin level and the user will lose all position margin. In actual contract trading, liquidation will be triggered when the mark price hits the liquidation price.

According to the different types of the contract, the calculation of the liquidation price is different:

USDT/Quanto Contract:
Liquidation Price = ( Opening Price ± Margin/Contract Multiplier/Position ) / [ 1 ± ( MMR + Taker Fee)]
'±' in the formula refers to the direction of the contract, go long refers to '-' while go short refers to '+'

Inverse Contract:
Liquidation Price = Position * Average Opening Price * ( 1 ± MMR ± Taker Fee ) / ( Position ± Margin * Average Opening Price)
'±' in the formula refers to the direction of the contract, go long refers to '+' while go short refers to '-'

Note:
Position refers to the number of contracts.
Maintenance Margin Ratio and Contract Multiplier can be viewed in the Contract Details.
Taker Fee: 0.075%


For example:



The contract shown in the picture above is a long contract with an average opening price of 2399, margin of 25.79, position 1ETH, and an MMR of 0.5%.

The calculation of liquidation price is as follows:
Liquidation Price = ( Opening Price - Margin/Contract Multiplier/Position ) / [ 1 - ( MMR + Taker Fee)]

That the liquidation price is calculated as:

Liquidation Price =(2399- 25.79/0.01/100)/【1 - (0.5% + 0.075%)】
Liquidation Price = 2373.21/0.99425
Liquidation Price ≈ 2386.94

Same as the reconciled price in the picture.
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