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LiquidationBuffer
Calculator · Guides
Guides

Liquidation, margin & funding — explained plainly

Short, focused explainers on the mechanics behind the calculator. No fluff, no "10 tips" filler — just what actually determines your liquidation price.

Basics

The core mechanics everyone using leverage should understand before opening a position.

How to calculate liquidation price
The formula, a worked example, and what a simple formula leaves out
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What is a margin buffer?
The cushion between your position and liquidation, and why it is smaller than the leverage suggests
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What maintenance margin actually means
The value that really determines your liquidation price — not your leverage
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Cross margin vs. isolated margin explained
Two different answers to what happens when a position moves against you
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Liquidation price vs. bankruptcy price
Why "nothing left" is rarer at liquidation than most traders assume
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Margin call vs. liquidation
There's no phone call before a crypto perpetual gets liquidated
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Negative balance protection in crypto futures
How exchanges try to keep you from losing more than your balance, and where that stops
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Costs & Fees

The recurring costs that quietly shrink your buffer even when the price doesn't move.

Crypto funding rates: why they can eat your buffer
How periodic payments between longs and shorts affect your liquidation distance
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Maker vs. taker fees explained
Why liquidation always costs the taker fee, never the maker fee
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Liquidation fees explained
What an exchange charges when it force-closes your position
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Strategy & Practice

Beyond the math — how to build the instincts that go with it.

How to practice liquidation risk without real money
Testnets, prediction games, and backtesting each teach something different
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