how Binance and Bybit calculate liquidation price

for a USDT-M isolated long, the approximation is liq = entry × (1 − 1/leverage + MMR). For an isolated short, it is liq = entry × (1 + 1/leverage − MMR). The long liq sits below entry, while the short liq sits above entry. At a fixed MMR, both have the same percentage distance from entry under this simplified equation.

entry is your average position entry price, leverage is the position’s leverage multiple, and MMR is the maintenance-margin rate for the position’s notional bracket. Leverage must enter the equation as a multiple: 20x means 20, so 1/leverage is 1/20 = 0.05. An MMR of 0.4% enters as 0.004, not 0.4.

notional selects the bracket before the equation is run. A $10,000 Binance BTC position falls inside the bracket up to $300,000, where MMR is 0.4% and maximum leverage is 150x. A $10,000 Bybit BTC position also falls inside its bracket up to $300,000, but that bracket uses 0.33% MMR and maximum leverage of 150x.

take a $10,000 Binance BTC isolated position with a worked-example entry of $97,400. Its notional is below the first BTC bracket ceiling of $300,000, so MMR is 0.4%, or 0.004. At 10x, the long calculation is $97,400 × (1 − 1/10 + 0.004) = $88,049.60. The short calculation is $97,400 × (1 + 1/10 − 0.004) = $106,750.40.

leverage compresses the available move rapidly. The Binance long has $9,350.40 of room at 10x, $4,480.40 at 20x and $1,558.40 at 50x. As percentages of the $97,400 entry, those distances are 9.6%, 4.6% and 1.6%. The short levels are equally distant above entry under the isolated approximation because each uses the same 0.4% MMR.

Bybit uses 0.33% MMR for a $10,000 BTC position because the notional sits inside its first bracket, which runs up to $300,000. With the same $97,400 entry, a 10x long becomes $97,400 × (1 − 1/10 + 0.0033) = $87,981.42. The matching short estimate is $106,818.58, leaving 9.67%, or $9,418.58, between entry and estimated liq.

the 0.07 percentage-point MMR gap between Binance at 0.4% and Bybit at 0.33% produces a $68.18 difference at every displayed leverage because $97,400 × (0.004 − 0.0033) = $68.18. Bybit’s estimated long liq is $68.18 lower, while its short liq is $68.18 higher. That difference remains constant here because entry and bracket MMR stay fixed.

MMR is not one fixed rate for every BTC position. Binance BTC starts at 0.4% through $300,000 notional, then moves to 0.5% through $800,000 and 0.65% through $3,000,000. Its next listed brackets use 1% through $12,000,000 and 2% through $70,000,000. The listed maximum leverage falls as notional moves through those brackets.

Bybit BTC also starts with a $300,000 ceiling, but its first MMR is 0.33%. The next bracket reaches $2,000,000 at 0.5%, followed by $2,600,000 at 0.56%, $3,200,000 at 0.63% and $3,800,000 at 0.67%. A position that crosses a notional threshold therefore needs the new bracket’s MMR and leverage cap rather than the first-tier value.

only the first 5 brackets are represented in this table and in the supplied calculator bed. For notionals above the final listed bracket, falling back to that last bracket slightly underestimates MMR. That makes the resulting liq estimate too generous, so larger positions require a direct venue check against the account’s live risk limit and maintenance margin.

the isolated formula can be inverted because distance from entry equals 1/leverage − MMR. If your target liquidation distance is d in decimal form, leverage = 1 ÷ (d + MMR). For a 5% target on Binance BTC’s 0.4% bracket, leverage is 1 ÷ (0.05 + 0.004) = 18.52x. This is mathematical leverage, not a position-size or loss limit.

the same 5% target with Bybit BTC’s 0.33% MMR implies 1 ÷ (0.05 + 0.0033) = 18.76x. At a 2% target, the calculations become 1 ÷ 0.024 = 41.67x on Binance and 1 ÷ 0.0233 = 42.92x on Bybit. The lower MMR permits slightly higher mathematical leverage for the same estimated liq distance.

distance inversion is bracket-dependent, so the order of operations matters. Deriving leverage with the first-tier MMR and then increasing notional into a higher bracket invalidates the result. The position’s notional, venue and symbol determine MMR first; only then can the tolerated-distance equation return the matching leverage.

1. convert the target distance to decimal form, so 2% becomes 0.02.
2. select the MMR from the position’s venue, symbol and notional bracket.
3. calculate leverage as 1 ÷ (distance + MMR), then check that it does not exceed the bracket’s maximum leverage.

the equation is an isolated-margin approximation. It ignores unrealised PnL on other positions because that balance matters under cross margin, not a self-contained isolated position. It also omits collateral transfers and any change to available margin after entry. Under cross, the same entry, leverage and notional can therefore produce a different live liq as the rest of the account moves.

accrued fees and funding are also outside the approximation. Binance funding intervals are 8 hours, and Bybit funding intervals are 8 hours in the supplied venue data. The baseline taker fees listed here are 0.05% for Binance and 0.055% for Bybit. At 50x, the stated taker round trips equal 5% and 5.5% of margin respectively, although the amount actually accrued depends on fills and account terms.

mark price is the relevant reference for the venue’s liquidation process, while a chart or order trigger may be configured around another price type. Conditional-order trigger type is selectable and varies by product and interface, so it must be checked on the account. A last-price wick and the venue’s mark can print differently without implying that the liquidation engine used the chart price.

• cross-margin equity, including unrealised PnL on other positions, is not included.
• fees, funding accruals and collateral changes since entry are not included.
• the venue’s live maintenance-margin computation and any bracket change after position adjustment are not included.
• execution after the liquidation threshold, including book depth and taker fill, is not predicted.

every liquidation figure on this page is an estimate — exchanges compute exact liq from live margin; always double-check on your venue. The account display has access to live collateral, accrued funding, fees and the venue’s current risk settings. Those inputs can shift the operative threshold away from a static equation calculated only from entry, leverage and bracket MMR.

a clean check starts with the exact symbol, margin mode, side, entry, notional and current bracket. For isolated margin, run the long or short equation with the verified MMR, then compare it with the venue’s displayed liq. For cross margin, treat the isolated equation as a reference only because account-wide equity and other unrealised PnL are deliberately absent.

liqsiren’s liquidation calculator uses the same isolated long and short equations with real Binance and Bybit maintenance-margin brackets. Its output includes liq price and distance, while separate position-size and funding-cost calculators cover contracts and carrying cost. The liquidation output retains the venue-check disclosure because the exchange’s live margin engine remains the final computation.