Short answer
For an isolated long, liquidation price is roughly entry x (1 - (1/leverage - m) / (1 - m)); for a short, entry x (1 + (1/leverage - m) / (1 + m)), where m is the maintenance margin rate. On Hyperliquid, m is half the margin needed at the coin's maximum leverage, so 1.25% for Bitcoin (max x40). A $100,000 BTC long at x10 liquidates near $91,139, a short near $108,642. Fees and funding move it slightly closer.
Liquidation is the one number every perps trader should know before entering, and most do not. Exchanges show it on the order screen, but understanding where it comes from tells you why x20 feels so different from x5, and why small coins liquidate sooner than Bitcoin at the same multiplier. This page gives the formula, then works it through.
Part of our perps for beginners guide.
What is a liquidation price?
It is the price at which the exchange closes your trade because the money left in it has fallen to the minimum required. With isolated margin, you lose about the whole amount you put on that trade, and nothing more.
The minimum required is called maintenance margin. The exchange closes the trade a little before your amount hits zero, so that the position can be closed without the exchange taking a loss. Words you need: amount (margin), multiplier (leverage), position (amount x multiplier). All are in the perps glossary.
What is the liquidation price formula?
For an isolated trade: long liquidation = entry x (1 - (1/L - m) / (1 - m)); short liquidation = entry x (1 + (1/L - m) / (1 + m)). L is your multiplier and m is the maintenance margin rate.
A simpler approximation, good enough for a quick check: the price can move against you by about 1/L minus m.
| Multiplier | 1/L | Rough move before liquidation (m = 1.25%) |
|---|---|---|
| x2 | 50% | about 49% |
| x5 | 20% | about 19% |
| x10 | 10% | about 9% |
| x20 | 5% | about 4% |
| x40 | 2.5% | about 1.3% |
Hyperliquid's own docs give the same idea in a more general form: liquidation price = price - side x margin available / position size / (1 - l x side), where l is the maintenance margin rate and side is 1 for long, -1 for short (>Hyperliquid docs, liquidations).
How does Hyperliquid set the maintenance margin?
On Hyperliquid, maintenance margin is half of the initial margin at the coin's maximum leverage. So m = 1 / (2 x max leverage).
| Coin's max multiplier | Maintenance margin rate m |
|---|---|
| x40 (Bitcoin) | 1.25% |
| x25 (Ether) | 2% |
| x20 | 2.5% |
| x10 | 5% |
| x5 | 10% |
That is why the same x10 trade liquidates sooner on a small coin: its maintenance margin is bigger. Source: >Hyperliquid docs, margining. Maximum multipliers change over time, so check the coin before you trade.
What does a $10 Bitcoin long at x10 look like?
Entry $100,000, liquidation near $91,139: Bitcoin can fall about 8.9% before the trade closes. Here is the math step by step.
| Step | Value |
|---|---|
| Your amount (margin) | $10 |
| Multiplier | x10 |
| Position | $100 = 0.001 BTC |
| Maintenance margin rate (BTC, max x40) | 1.25% |
| 1/L - m | 10% - 1.25% = 8.75% |
| Divide by (1 - m) | 8.75% / 98.75% = 8.86% |
| Liquidation price | $100,000 x (1 - 8.86%) = about $91,139 |
Check: at $91,139, the trade has lost about $8.86. The $1.14 left equals 1.25% of the position at that price. That is exactly the maintenance margin, so the trade closes.
What does the same trade look like as a short?
Entry $100,000, liquidation near $108,642: Bitcoin can rise about 8.6% before the short closes.
For a short, divide by (1 + m) instead: 8.75% / 101.25% = 8.64%. Liquidation = $100,000 x 1.0864 = about $108,642.
Shorts liquidate a little sooner in percentage terms because, as the price rises, the position grows and so does the maintenance margin.
What are the liquidation prices from x2 to x40?
Here is a full table for Bitcoin at $100,000, maintenance margin 1.25%, before fees.
| Multiplier | Long liquidates near | Move down | Short liquidates near | Move up |
|---|---|---|---|---|
| x2 | $50,633 | 49.4% | $148,148 | 48.1% |
| x5 | $81,013 | 19.0% | $118,519 | 18.5% |
| x10 | $91,139 | 8.9% | $108,642 | 8.6% |
| x20 | $96,203 | 3.8% | $103,704 | 3.7% |
| x40 | $98,734 | 1.3% | $101,235 | 1.2% |
And for a coin whose maximum is x10 (maintenance 5%), entry $100:
| Multiplier | Long liquidates near | Move down | Short liquidates near | Move up |
|---|---|---|---|---|
| x2 | $52.63 | 47.4% | $142.86 | 42.9% |
| x5 | $84.21 | 15.8% | $114.29 | 14.3% |
| x10 | $94.74 | 5.3% | $104.76 | 4.8% |
At its maximum x10, a small coin closes on a 5% move. Small coins move 5% in an hour all the time.
What moves the liquidation price after I open?
Fees, funding and adding or removing margin. All three change how much money is left in the trade.
- Fees. Opening fees come out of what you put in, so the liquidation price starts a hair closer than the formula says.
- Funding. Paying funding every hour slowly moves it closer; receiving funding moves it away. See funding rate explained.
- Adding margin. On an isolated trade, adding money moves the liquidation price further away.
The exchange uses the mark price, not the last trade, to decide liquidation. That protects you from a single odd trade on a thin book.
Why do big positions liquidate sooner?
Because Hyperliquid uses margin tiers: above a certain position size, the maximum multiplier falls and the maintenance margin rises. For small traders this rarely matters; for whales it does.
If a coin's maximum drops from x40 to x20 above a size threshold, the maintenance margin for that part rises from 1.25% to 2.5%, and the liquidation price moves closer. That is one reason a whale's liquidation price can sit closer than the simple formula suggests, and why your small copy of the same trade may have a slightly different liquidation price from theirs. Tiers per coin are listed in >Hyperliquid's margin tier docs.
How do I use this before a trade?
Decide how far the price could reasonably move against you, then choose a multiplier whose liquidation sits well beyond that.
- Estimate a normal bad move. For example, Bitcoin can easily drop 5% in a day.
- Find the move each multiplier allows. Roughly 1/L minus the maintenance margin.
- Keep a buffer. If a normal bad move is 5%, x10 (about 9%) is tight and x5 (about 19%) has room.
- Set a stop loss before liquidation. A planned exit beats a forced one. See take profit and stop loss.
- Practice with practice money. CopyHype gives $1,000 of practice money free for 24 hours, so you can watch liquidation math play out on live prices.
When you copy a whale on CopyHype, your copy uses the whale's multiplier (raised only if needed to reach Hyperliquid's $10 order minimum), and every trade uses isolated margin, so your amount is the most a trade can lose.
Frequently asked questions
Can I lose more than my margin when liquidated?
Not with isolated margin. The trade closes and you lose about its amount. With cross margin, losses can draw on the rest of your account.
Why did I get liquidated before the price I calculated?
Usually fees and funding, or a different maintenance margin than you assumed. Big positions also face higher maintenance margins in tiers.
Is liquidation price the same as a stop loss?
No. A stop loss is an exit you choose. Liquidation is a forced exit when your margin runs out, and it loses almost everything you put on the trade.
Does lower leverage always mean safer?
It means the price can move further before liquidation, and fees are lower. It does not make a bad trade good.
How do I calculate liquidation with cross margin?
With cross margin, all your free balance counts as margin, so the formula uses your whole account. That is why one bad cross trade can drain everything. See isolated vs cross margin.
Keep reading
- Leverage explained: what x5, x10 and x50 really do to your moneyCrypto leverage explained simply: what x10 means in dollars, how far price can move before liquidation at each multiplier, and how to pick one.
- Leverage and liquidation on Hyperliquid, explained for copiersWhat a multiplier does on Hyperliquid, how far price can move before a trade is liquidated, and why isolated margin caps what a trade can lose.
- Isolated vs cross margin: which one protects your money?Isolated vs cross margin with simple examples: how each mode works on Hyperliquid, what happens at liquidation, and why beginners start isolated.