Isolated Margin

Traders will allocate their margin on an order-by-order basis. If a trader is liquidated, only the margin allocated will be affected and the remaining wallet balance rests unaffected.

Isolated Margin Liquidation Price Equation

Isolated Margin Liquidation Price (Long)

$$ \textsf{Isolated Margin Liquidation Price (Long)} ={{\textsf{Avg. Entry Price} \times \textsf{Leverage}} \over \textsf{Leverage(1 - Maintenance Margin Rate) + 1}} $$

<Isolated Margin Liquidation Price (Long) Example> 

David goes long 10x @2000 USDT

$$ \small\textsf{Isolated Margin Liquidation Price (Long)} ={{\textsf{2000} \times \textsf{10}} \over \textsf{10(1 - 0.005) + 1}} ≈ \textsf{1,826.48 USDT} $$

Isolated Margin Liquidation Price (Short)

$$ \small\textsf{Isolated Margin Liquidation Price (Short)} ={{\textsf{Avg. Entry Price} \times \textsf{Leverage}} \over \textsf{Leverage(1 + Maintenance Margin Rate) - 1}} $$

<Isolated Margin Liquidation Price (Short) Example> 

David goes short 10x @2000 USDT

$$ \small\textsf{Isolated Margin Liquidation Price (Short)} ={{\textsf{2000} \times \textsf{10}} \over \textsf{10(1 + 0.005) - 1}} ≈ \textsf{2,209.94 USDT}$$