Your Margin Ratio and Liquidation Price are key to knowing how close you are to losing your position.
If your Margin Ratio reaches 100%, your position will be liquidated.
📊 What is the Margin Ratio?
The Margin Ratio shows how much of your available margin is being used to keep your position open.
It’s calculated from:
Your Equity in the position
The Maintenance Margin required
Formula:
Margin Ratio = (Maintenance Margin ÷ Equity) × 100
📚 See the exact calculation in the Margin & Risk section of our Rulebook.
⚠️ Margin Ratio levels to watch
Below 80% → Safe zone.
Over 80% → Warning zone.
100% → Liquidation will be triggered.
📏 What is the Liquidation Price?
The Liquidation Price is the Mark Price level at which your margin ratio will hit 100%, causing liquidation.
It’s determined by:
Your entry price
Position size
Leverage
Remaining collateral
Funding payments (if any)
📚 See how liquidation price is calculated in the Liquidation Mechanics section of our Rulebook.
🧮 Example
Position: Long 1 BTC GOLD/BTC at 0.0300 BTC
Leverage: 10x
Initial Margin: 0.1 BTC
Maintenance Margin: 0.05 BTC
If the Mark Price drops enough for your equity to fall to 0.05 BTC, your margin ratio hits 100% and liquidation is triggered.
🛡️ How to lower your margin ratio
Reduce position size.
Lower your leverage.
Use a Stop Loss before your margin ratio reaches dangerous levels.
📚 Learn how to set stop orders in the Order Types & Execution Rules section of our Rulebook.
💡 Key takeaways
Watch your Margin Ratio in the Open Positions panel.
Remember that liquidation is based on Mark Price, not the last traded price.
Don’t wait for the 80% warning — act early to manage risk.