How to Calculate Liquidation Price of Coin-M Futures Contracts
2021-02-05 05:40
Below is the liquidation price formula for Coin-M Futures contracts:
where
WB
Wallet Balance
TMM1
Maintenance Margin of all other contracts, excluding Contract 1
If it is in Isolated Margin Mode, TMM = 0, UPNL= 0
UPNL1
Unrealized PNL of all other contracts, excluding Contract 1
If it is in Isolated Margin Mode, UPNL = 0
cumB
Maintenance Amount of BOTH Position (One-way Mode)
cumL
Maintenance Amount of LONG Position (Hedge Mode)
cumS
Maintenance Amount of SHORT Position (Hedge Mode)
SideBOTH
Direction of BOTH Position
1 = Long Position
-1 = Short Position
B
Absolute Value of BOTH position size (One-way Mode)
EPB
Entry Price of BOTH Position (One-way Mode)
L
Absolute Value of LONG Position Size (Hedge Mode)
EPL
Entry Price of LONG Position (Hedge Mode)
S
Absolute Value of SHORT Position Size (Hedge Mode)
EPS
Entry Price of SHORT Position (Hedge Mode)
MMR B
Maintenance Margin Rate of BOTH Position (one-way mode)
MMR L
Maintenance Margin Rate of LONG Position (Hedge Mode)
MMR S
Maintenance Margin Rate of SHORT Position (Hedge Mode)
CM
Contract Size of the Symbol
Notes:
In Cross Margin mode, WB is crossWalletBalance
In Isolated Margin mode, WB is Isolated Wallet Balance of the isolated position, where TMM=0 and UPNL=0, You can substitute the position quantity, MMR, cum into the formula to calculate.
For example, if the BTCUSD contract position is 300 BTC, the Maintenance Margin Rate would be 12.5%.
Note: If the position notional (the calculated result of the liquidation price) and the assumed margin levels are different, you must substitute other margin levels’ maintenance margin rate and maintenance margin amount to recalculate the liquidation price.
Maintenance Amount
You can calculate the Maintenance Amount using the below formula. For example, if the BTCUSD contract position is 300 BTC, the Maintenance Amount would be 11.605 BTC.
Maintenance Margin Amount formula
Maintenance Margin = Position Notional * Maintenance Margin Rate on the level of position notional - Maintenance Amount on the level of position notional
For example, you have 100 BTCUSDT Perpetual contracts, and the latest Mark Price is 25,000 USDT. The position’s notional value is calculated as 100 * 100 / 25,000 = 0.4 BTC, which is in margin level 1. Thus, you can calculate the corresponding Maintenance Margin Rate and Maintenance Amount and substitute in the above formula:
