Leverage changes distance to failure

Maximum leverage is asset-dependent. The maintenance margin rate is half the initial margin rate at the tier’s maximum leverage. The maintenance amount also subtracts the tier’s maintenance deduction. A rate alone overstates the required amount in higher tiers.

Using less than maximum leverage increases distance to liquidation, but cross-margin exposure and other positions still matter. Size from a tolerable loss, not the interface maximum.

maintenance_margin = notional × maintenance_margin_rate − maintenance_deduction

Mark price drives liquidation

Hyperliquid uses a robust mark derived from several price inputs. Several inputs reduce sensitivity to one local print, but your liquidation state can differ from what a last-trade chart suggests.

Monitor mark, oracle and account equity. A stop order is a risk instruction; it can slip or fail in a gap and should not be placed at the liquidation boundary.

What happens during liquidation

The system first sends liquidation orders to the book. If equity falls below two thirds of maintenance margin, the backstop mechanism can assume the position. Hyperliquid documents no separate liquidation clearance fee.

Positions above $100,000 can enter partial liquidation in 20% increments with a cooldown before further action. Partial liquidation does not guarantee a favorable outcome; it reduces exposure while the account is under stress.

Controls that matter before entry

Liquidation formulas are deterministic, but realized outcomes depend on the order book and the rest of the account. Use the official interface for current liquidation estimates and recalculate after every size change.

  • Keep a buffer above maintenance margin.
  • Use an invalidation-based stop well before liquidation.
  • Include funding and close fees in available equity.
  • Stress the mark price beyond normal volatility.
  • Avoid correlated positions that consume margin together.

Frequently asked questions

Which price triggers liquidation on Hyperliquid?

The mark price drives margin calculations and liquidation, not one last trade. Hyperliquid derives the mark from robust price inputs documented in its oracle methodology.

Can one formula calculate a cross-margin liquidation price?

Not from one position alone. Cross-margin equity depends on the account’s collateral, unrealized profit and loss, maintenance requirements and other positions. Use the official account estimate for the current portfolio.

Why can a displayed liquidation price change?

Position size, isolated margin, account equity, maintenance tier, funding, fees and other cross-margin positions can all change the threshold. Recalculate after every material account or position change.