PERP.WIKI

Liquidation Calculator

Estimate your Hyperliquid liquidation price based on entry price, leverage, and margin. Understand your risk before entering a trade.

Results

Estimated Liquidation Price
$2,715.00
9.50% from entry
Initial Margin Required
$1,000.00
Max Loss Before Liquidation
$950.00

How Liquidation Works on Hyperliquid

Liquidation occurs when your position's unrealized loss erodes your margin below the maintenance margin threshold. On Hyperliquid, the default maintenance margin rate is 0.5% of the position's notional value.

When your position hits the liquidation price, Hyperliquid's backstop liquidator takes over. Unlike centralized exchanges that use cascading liquidation engines, Hyperliquid routes liquidated positions to the HLP vault (Hyperliquidity Provider). HLP acts as the counterparty for all liquidations, absorbing the position and the associated risk.

This design means liquidations are processed efficiently without order book impact or liquidation cascades. Traders whose positions are liquidated lose their remaining margin (minus the maintenance margin portion retained by the protocol).

For long positions, the liquidation price sits below your entry price. For short positions, it sits above. The higher your leverage, the closer the liquidation price is to your entry — and the smaller the adverse move required to wipe out your position.

Tips to Avoid Liquidation

Use lower leverage
Lower leverage increases the distance between your entry and liquidation price. A 5x position can absorb a ~20% adverse move vs. ~2% at 50x.
Set stop-loss orders
Always place a stop-loss order above your liquidation price. This ensures your position is closed at a controlled loss rather than being liquidated.
Use cross-margin mode
Cross-margin shares your full account balance across all positions. This provides a larger buffer against liquidation compared to isolated margin.
Monitor funding rates
Negative funding rates on longs (or positive on shorts) gradually drain your margin. Check funding rates regularly, especially for longer-duration holds.

Hyperliquid Liquidation FAQ

What is a liquidation price on Hyperliquid?▼
Your liquidation price is the price at which your margin balance falls below the maintenance margin requirement. When the mark price reaches this level, Hyperliquid's backstop liquidator closes your position to prevent further losses. The liquidation price depends on your entry price, leverage, position direction, and the maintenance margin rate.
How does Hyperliquid's liquidation engine work?▼
Hyperliquid uses a backstop liquidator system. When a position falls below maintenance margin, the liquidation engine takes over the position. The HLP vault absorbs the risk by taking the other side of liquidated positions. This system ensures efficient liquidations without cascading failures.
What is the maintenance margin rate on Hyperliquid?▼
The default maintenance margin rate on Hyperliquid is 0.5% for most perpetual markets. This means you need to maintain at least 0.5% of your position's notional value as margin. Higher-risk or lower-liquidity assets may have higher requirements.
Can I avoid liquidation on Hyperliquid?▼
Yes. Use lower leverage, set stop-loss orders, use cross-margin mode, monitor funding rates, and keep extra margin in your account. Use this calculator to plan positions with appropriate risk levels before entering a trade.

Related Resources

Live MarketsGlossaryWhat is Hyperliquid?Fee Calculator