Estimated Liquidation Price (Est. Liq. Price)

The estimated liquidation price refers to the price calculated based on current funds, where the maintenance margin ratio (MMR) equals 100%. The estimated liquidation price may change and is for reference only. The actual liquidation price when the maintenance margin ratio (MMR) falls to or below 100% shall prevail. (Note: Some users that haven't upgraded to the new liquidation mode still use the liquidation price to trigger liquidation. It is recommended that you upgrade as soon as possible.)

The formula for calculating the est. liq. price varies depending on the contract type:

One-Way Mode

USDT-M Perpetual Contracts

Cross Margin Mode

Est. Liq. Price = (Average Entry Price ± Margin / Contract Multiplier / Amount) / [ 1 ± (MMR + Taker Fee Rate)]

-Margin = Total Margin Balance - Current Position Unrealized PnL - (Total Maintenance Margin - Current Position Maintenance Margin)
-− when going long, + when going short.

Example

- Average Entry Price: 2524.45 USDT - Mark Price: 2606.73 USDT - Amount: 0.02 ETH (i.e. 2 Contracts) - MMR: 0.5% - Taker Fee Rate: 0.075% - Margin: 48.24916278 USDT - Est. Liq. Price = (2524.45 - 48.24916278/1/0.02)/[1-(0.5%+0.075%)] = 112.64 USDT

Isolated Margin Mode

Est. Liq. Price = (Average Entry Price ± Margin / Contract Multiplier / Amount) / [ 1 ± (Maintenance Margin Ratio + Taker Fee Rate)]

• Margin is the margin occupied by isolated positions.
• − when going long, + when going short.

Example

- Average Entry Price: 60,415 USDT - Amount: 0.0131 BTC (i.e. 131 Contracts) - MMR: 0.4% - Margin: 79.73 USDT - Est. Liq. Price = (60415-79.73722738/0.0001/131)/[1-(0.004 + 0.00075)] = 54587.4 USDT

BTC-M Perpetual Contracts

Cross Margin Mode

Est. Liq. Price = Amount x Average Entry Price x [1 ± (MMR + Taker Fee Rate)] / (Amount + Margin x Average Entry Price)

• Margin = Total Margin Balance - Current Position Unrealized PnL - (Total Maintenance Margin - Current Position Maintenance Margin)
• + when going long, − when going short.

Isolated Margin Mode

Est. Liq. Price = Amount x Average Entry Price x [1 ± (MMR + Taker Fee Rate)] / (Amount + Margin x Average Entry Price)

• Margin is the margin occupied by isolated positions.
• + when going long, − when going short.

Hedge Mode

USDT-M Perpetual Contracts

Cross Margin Mode

Est. Liq. Price = [Margin - (Entry Price for Long Position x Long Position Amount + Entry Price for Short Position x Short Position Amount)] / {max [(Long Position Amount x (MMR for Long Position + Taker Fee Rate), -Short Position Amount x (MMR for Short Position + Taker Fee Rate))] + min [Long Position Amount, (-Short Position Amount) ] x Taker Fee Rate - (Long Position Amount + Short Position Amount)}

• Margin = Total Margin Balance - Current Position Unrealized PnL - (Total Maintenance Margin - Current Position Maintenance Margin)
• Current Coin Maintenance Margin = {max [Long Position Amount x Mark Price x (MMR for Long Position + Taker Fee Rate), (-Short Position Amount) x Mark Price x (MMR for Short Position + Taker Fee Rate)] + min (Long Position Amount x Mark Price x Taker Fee Rate, -Short Position Amount x Mark Price x Taker Fee Rate)}

Example

- Average Entry Price for Long Position: 2611.55 USDT - Long Position Amount: 0.03 ETH (i.e. 3 Contracts) - Average Entry Price for Short Position: 2611.85 USDT - Short Position Amount: -0.01 ETH (i.e. 1 Contract) - Mark Price: 2594.00 USDT - MMR: 0.5% - Taker Fee Rate: 0.075% - Margin: 8.789557104 USDT - Est. Liq. Price = (8.789557104 - (0.03 x 2611.55 - 0.01 x 2611.85)) / (-0.01982) = 2191.65 USDT

Isolated Margin Mode

Est. Liq. Price = (Average Entry Price ± Margin / Contract Multiplier / Amount) / [ 1 ± (MMR + Taker Fee Rate)]

• Margin is the margin occupied by isolated positions.
• - when going long, + when going short.

BTC-M Perpetual Contracts

Cross Margin Mode

Est. Liq. Price = {max [Long Position Amount x (MMR for Long Position + Taker Fee Rate). (-Short Position Amount) x (MMR for Short Position + Taker Fee Rate)] + min [Long Position Amount x Taker Fee Rate, (-Short Position Amount) x Taker Fee Rate] + (Long Position Amount + Short Position Amount)} / [Margin + (Long Position Amount / Average Entry Price for Long Position + Short Position Amount / Average Entry Price for Short Position)]

• Margin = Total Margin Balance - Current Position Unrealized PnL - (Total Maintenance Margin - Current Position Maintenance Margin)
• Current Coin Maintenance Margin = max {(Long Position Amount / Mark Price) x (MMR for Long Position + Taker Fee Rate), [(-Short Position Amount) / Mark Price] x (MMR for Short Position + Taker Fee Rate)} + min (Long Position Amount, -Short Position Amount) x Mark Price x Taker Fee Rate

Isolated Margin Mode

Est. Liq. Price = Amount x Average Entry Price x [1 ± (MMR + Taker Fee Rate)] / (Amount + Margin x Average Entry Price)

• Margin is the margin occupied by isolated positions.
• + when going long, - when going short.

Bankruptcy Price

The bankruptcy price is the price calculated when the position margin is only enough to cover the Taker fee. After liquidation is triggered, the system will place an order at the bankruptcy price, using this price as the liquidation order price for settlement.
If the market price is better than the bankruptcy price, the remaining margin will be added to the insurance fund. If the market price is worse than the bankruptcy price, Gate’s insurance fund will cover the loss in margin to ensure the smooth completion of the liquidation process.
The bankruptcy price is a calculated price rather than an actual execution price, so it will not be displayed on the candlestick chart.

USDT-M Perpetual Contracts

Cross Margin Mode

1.Long Position
Bankruptcy Price = Mark Price at Liquidation × [1 - (Current MMR + Taker Fee Rate) × Margin Ratio] / (1 - Taker Fee Rate)
2.Short Position
Bankruptcy Price = Mark Price at Liquidation × [1 + (Current MMR + Taker Fee Rate) × Margin Ratio] / (1 + Taker Fee Rate)

Isolated Margin Mode

Bankruptcy Price = (Average Entry Price ± Margin / Contract multiplier / Amount) / (1 ± Taker Fee Rate)

-− when going long, + when going short.

BTC-M Perpetual Contracts

Cross Margin Mode

1.Long Position
Bankruptcy Price = Mark Price at Liquidation × (1 + Taker Fee Rate) / [1 + (MMR + Taker Fee Rate) x Margin Ratio]
2.Short Position
Bankruptcy Price = Mark Price at Liquidation × (1 - Taker Fee Rate) / [1 - (MMR + Taker Fee Rate) x Margin Ratio]

Isolated Margin Mode

Bankruptcy Price = Amount × Average Entry Price × (1 ± Taker Fee Rate) / (Amount ± Margin × Average Entry Price)

-+ when going long, − when going short.

Note

1. MMR and contract multiplier can be viewed on Contract Details page.
2. For detailed explanations of contract types, please refer to What are the Differences Between USDT-M and BTC-M Perpetual Contracts.
3. For a detailed description of the liquidation process, please refer to Liquidation Process.
4. The estimated liquidation price in cross margin mode may change at any time, as the margin balance is tied to the unrealized PnL of each position.
5. Unrealized PnL for the current position includes both long and short positions, and maintenance margin is also applied to both sides.
6. Actual Taker fee rate is based on liquidation details.
7. Minor discrepancies may occur in calculations due to fee variations, which can be ignored.
8. Displayed values may differ from actual calculated values due to precision issues.

Gate reserves the final right to interpret the product.
For further assistance, please visit the Gate official support page or contact our customer support team.

Disclaimer

The content provided herein is for reference and educational purposes only and does not constitute any financial, investment, trading, or legal advice, nor does it constitute an offer or solicitation to buy or sell any digital assets. Gate makes no express or implied representations or warranties regarding the accuracy, completeness, or timeliness of the information contained herein. Product features, interfaces, rules, and fee structures may be updated or adjusted at any time. Please refer to the latest announcements and the actual information displayed on the Gate platform for the most accurate details.
Digital asset investments involve significant risk, and prices may fluctuate substantially. You may lose the entire amount of your investment. Please make decisions cautiously based on your own financial situation and risk tolerance after fully understanding the associated risks. If necessary, you are advised to consult an independent professional financial or legal advisor.
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