In some cases, the liquidation price may be displayed as “/” or “--” for a particular position. This is because the liquidation price for each token is calculated with an assumption that the asset value of other positions remain the same.
When the asset value of certain positions may not cause liquidation (even if those positions become $0 in value), the liquidation price won’t be displayed. For example:
User B has 10,000 USDT as collateral and he borrowed 20,000 USDT to purchase 1 BTC at $29,000 and 1 ETH at $1,000. Now his margin position is 1 BTC and 1 ETH (asset) and 20,000 USDT (debt).
Liquidation price of BTC in USDT (assuming the ETH price remains constant at $1,000):
= (BTC Price * 1 BTC + ETH Price * 1 ETH) / $20,000 = 1.1
= (BTC Price * 1 BTC + $1,000) / $20,000 = 1.1
= BTC Liquidation Price = 1.1 * 20,000 - 1000
= BTC Liquidation Price = $21,000
Liquidation Price of ETH in USDT (assuming the BTC price remains constant at $29,000):
= (BTC Price * 1 BTC + ETH Price * 1 ETH) / $20,000 = 1.1
= ($29,000 + ETH Price * 1 ETH) / $20,000 = 1.1
= ETH Liquidation Price = 1.1 * 20,000 - 29,000
= ETH Liquidation Price = -$7,000 < 0
In the above example, even if the value of the ETH position goes to $0, there’s still $29,000 worth of BTC against $20,000 USDT debt. Therefore, no liquidation will occur. In this instance, the liquidation price for ETH will be displayed as “/” or “--”.