How perpetual futures liquidation price and maintenance margin work
A perpetual futures position does not wait until 100% of your initial margin is gone to liquidate. Exchanges trigger liquidation as soon as your remaining margin falls to the maintenance margin set by the Maintenance Margin Rate (MMR), a tiered rate each venue publishes per contract and position size. Hyperliquid, for example, sets maintenance margin at half the initial margin at the market's max leverage (read 2026-10-22), so a 40× market carries 1.25%. Using the calculator's Binance-style estimate, a 20× isolated Long with a 5.0% initial margin and an example 0.5% MMR liquidates after about a 4.52% move against your entry.
| Leverage | Initial margin % | Maintenance margin % | Long liquidation distance | Short liquidation distance |
|---|---|---|---|---|
| 5× | 20.00% | 0.50% | -19.60% from entry | +19.40% from entry |
| 10× | 10.00% | 0.50% | -9.55% from entry | +9.45% from entry |
| 20× | 5.00% | 0.50% | -4.52% from entry | +4.48% from entry |
| 50× | 2.00% | 0.50% | -1.51% from entry | +1.49% from entry |
Planning a multi-entry limit DCA ladder without blowing your stop
Scaling into a perpetual position with resting limit orders (Dollar-Cost Averaging) pulls your average entry toward the current price and moves the liquidation price lower on a long (higher on a short). It does not buy you more room: when every rung uses the same leverage, liquidation stays the same percentage from the new average entry, so the distance from the latest fill shrinks. If a rung sits beyond the liquidation price left by the earlier fills, the position is gone before that order fills; the ladder table marks that rung and stops there. Pair this ladder planner with our Crypto Position Size Calculator, Crypto Funding Rate Calculator, Crypto Perpetual Fee & Break-Even Calculator and Spot Average Down Calculator.