Bitget futures: Estimated liquidation price

Bitget futures: About [Estimated liquidation price]

1. Introduction

Users can view the estimated liquidation price on both the order page and the position page to understand the risks associated with opening or holding positions. The term "estimated liquidation price" is used because the liquidation price shown here is only a reference value based on current market conditions and account status. The estimated liquidation price may change due to market movements, trading activity, and margin levels. Users should always monitor their account margin ratio.

2. Calculation

2.1. Estimated liquidation price (isolated margin)

Definition:

MMR: Maintenance margin rate of the trading pair.

CoinMainIndexPrice: The index price for Coin-M futures. For USDT-M futures, the index price is: 1.

TakerFeeRatio: The fee rate applied when placing taker orders.

Position direction: The current position direction of the trading pair. 1 indicates a long position, and −1 indicates a short position.

Formula:

Estimated liquidation price = [position margin − position size × average entry price × position direction] ÷ [position size × (MMR + TakerFeeRatio − position direction]

2.2 Estimated liquidation price (cross margin)

The estimated liquidation price under cross margin varies between hedge mode and one-way mode. The corresponding formulas are shown below. The difference in liquidation price formulas between one-way mode and hedge mode stems from their different approaches to risk measurement of positions and orders, resulting in different calculation methods.

2.2.1 Estimated liquidation price under hedge mode (cross margin)

Definition:

X: Total asset balance + current unrealized PnL from other cross margin trading pairs − the sum of maintenance margins of other trading pairs.

BP: The index price for the Coin-M futures. For USDT-M futures, the index price is: 1.

MMR: Maintenance margin rate of the trading pair.

TakerFeeRatio: The fee rate applied when placing taker orders.

Formula:

1. Current long position value + long order value ≥ short position value + short order value

Estimated liquidation price = [X × BP − long position size × average long holding price + short position size × average short holding price − long order size × long order price × (MMR + TakerFeeRatio)] ÷ [long position size × (MMR + TakerFeeRatio) − long position size + short position size].

2. Current long position value + long order value < short position value + short order value

Estimated liquidation price = [X × BP − long position size × average long holding price + short position size × average short holding price − short order size × short order price × (MMR + TakerFeeRatio)] ÷ [short position size × (MMR + TakerFeeRatio) − long position size + short position size]

2.2.2 Estimated liquidation price under one-way mode (cross margin)

Definition:

X: Total asset balance + isolated margin − the sum of isolated margin reserved + current unrealized PnL of other cross margin trading pairs − the sum of maintenance margin of other trading pairs.

BP: The index price for the Coin-M futures. For USDT-M futures, the index price is: 1.

MMR: Maintenance margin rate of the trading pair.

TakerFeeRatio: The fee rate applied when placing taker orders.

Position direction: The current position direction of the trading pair. 1 indicates a long position, and −1 indicates a short position.

Formula:

1. Current position value + same-direction order size × order price ≥ opposite-direction order size × order price

Estimated liquidation price = [X × BP − position size × position direction × average holding price − same-direction order size × order price × (MMR+takerfee)] ÷ [position size × (MMR + TakerFeeRatio − position direction)].

2. Current position value + same-direction order size × order price < opposite-direction order size × order price

Estimated liquidation price = −[X × BP − position size × position direction × average holding price − opposite-direction order size × order price × (MMR + TakerFeeRatio) ÷ (position size × position direction)