Updated 2026-07-25
The liquidation price is the price at which a position's remaining equity falls to its maintenance margin requirement, so the exchange force-closes it. It is a function of entry price, position size, margin posted, the maintenance-margin rate for that size tier, and fees, and on most venues it moves whenever you add margin or the tier changes.
Two details trip people up. First, most perpetual venues evaluate liquidation against the mark price, not the last traded print, so a single thin wick on one exchange should not liquidate a position that the wider index never reached. Second, whether the price moves as your account gains or loses depends on the margin mode: under isolated margin only that position's margin is at risk, while cross margin pulls on the whole balance. Always read the liquidation price the venue itself shows for your position.