{"id":73273,"date":"2025-11-20T14:10:38","date_gmt":"2025-11-20T08:40:38","guid":{"rendered":"https:\/\/mudrex.com\/blog\/?p=73273"},"modified":"2025-11-26T16:46:34","modified_gmt":"2025-11-26T11:16:34","slug":"liquidation-price-on-mudrex-futures","status":"publish","type":"post","link":"https:\/\/mudrex.com\/blog\/liquidation-price-on-mudrex-futures\/","title":{"rendered":"Liquidation Price on Mudrex Futures"},"content":{"rendered":"\n

Liquidation<\/strong> happens when the Mark Price<\/strong><\/a> falls (for longs) or rises (for shorts) to your liquidation price<\/strong>. At that point, your position no longer has enough margin to meet the maintenance margin requirement, so the system steps in to close it. The actual close is executed at the bankruptcy price<\/strong><\/a>, which is the level where your initial margin is fully used. This design prevents losses from spilling beyond your margin and helps keep the platform safe for everyone. <\/a><\/p>\n\n\n\n

On Mudrex (in line with industry practice), the Mark Price\u2014not the last traded price\u2014triggers liquidation. That means even if the last trade hasn\u2019t touched your level, liquidation can still start if the Mark Price has. This avoids unfair stop-outs from brief wicks and keeps risk checks anchored to a fair reference price.<\/p>\n\n\n\n

How the liquidation price is determined (isolated margin)<\/strong><\/h2>\n\n\n\n

In isolated margin, the margin you allocate to a position is ring-fenced from the rest of your balance. The liquidation price comes from your entry, the initial margin you posted, the maintenance margin the position must keep, your position size, and any extra margin you manually add later. A concise way to see it is:<\/p>\n\n\n\n

For a long position, the liquidation price is roughly your entry price minus the per-unit cushion you have between initial margin and maintenance margin (adjusted for any extra margin you\u2019ve added). For a short, it\u2019s the entry plus that cushion per unit. <\/p>\n\n\n\n