Forced liquidation, also known as "blowout," occurs when the margin ratio of a position reaches 100%, triggering forced liquidation and resulting in the loss of all margin used for the position.
1. Margin Ratio Calculation Formula
1.1 Isolated Margin Ratio
[Contract Quantity x Face Value x (Average Entry Price x Maintence Margin Rate + Mark Price x Liquidation Fee Rate)] / (Position Margin + Unrealized PnL) x 100%
Example: User A holds a long position in BTCUSDT with 100x leverage, contract quantity of 10,000, average entry price of 60,000, face value of 0.001 BTC, maintenance margin rate of 0.25%, mark price of 59,000, liquidation fee rate of 0.006, unrealized PnL of -960, and position margin of 6,000.
[10,000 x 0.001 x (60,000 x 0.0025 + 59,000 x 0.006)] / (6,000 - 960) x 100% = 100%
1.2 Cross Margin Ratio
(Total Cross Margin + Total Liquidation Fees) / (Account Balance + Demo Balance - Isolated Margin Frozen + Unrealized PnL) x 100%
Example: User A holds a cross margin long position in BTCUSDT, contract quantity of 10,000, face value of 0.001 BTC, mark price of 59,000, long margin of 3,000, short margin of 0, liquidation fee rate of 0.006, account balance of 50,000, demo balance of 5,000, isolated margin frozen of 0, and unrealized PnL of -48,460.
(3,000 + 0.001 x 10,000 x 59,000 x 0.006) / (50,000 + 5.000 - 0 - 48,460) x 100% = 100%
2. Liquidation Price Calculation Formula
2.1 Isolated Liquidation Price
Long Position:
[Position Margin − Face Value x Contract Quantity x Average Entry Price x (1+Maintenance Margin Rate)] / Face Value x Contract Quantity x (Liquidation Fee Rate - 1 )
Short Position:
[Position Margin + Face Value x Contract Quantity x Average Entry Price x (1−Maintenance Margin Rate)] / Face Value x Contract Quantity x (Liquidation Fee Rate+1)
2.2 Cross Liquidation Price:
(Wallet Balance + Demo Balance − Total Isolated Frozen Margin − Other Cross Margin Maintenance − Other Cross Margin Liquidation Fees + Other Cross Margin Unrealized PnL − Face Value x Long Position Quantity x Long Entry Price + Face Value x Short Position Quantity x Short Entry Price) / (Face Value x (Short Position Quantity − Long Position Quantity)+∣Face Value x Long Position Quantity x Long Maintenance Margin Rate − Face Value x Short Position Quantity x Short Maintenance Margin Rate∣ + Face Value x Total Position Quantity x Liquidation Fee Rate)
※ Account Balance = Transfers In - Transfers Out + Realized PnL
※ Maintenance Margin = Position Value × Maintenance Margin Rate
※ Isolated Position Value = Contract Quantity × Face Value × Average Entry Price
※ Cross Position Value = Contract Quantity × Face Value × Mark Price