How Hyperliquid Liquidation Price Is Calculated

What determines a perpetual's liquidation price?

On any leveraged perpetual position, your liquidation price is the price at which your posted margin is no longer enough to cover the position's losses, and the exchange closes it automatically. The higher your leverage, the closer your liquidation price sits to your entry, because a smaller adverse move wipes out the same margin.

Two numbers drive this: your entry price and your leverage. Hyperliquid's actual liquidation math also factors in a maintenance margin requirement that varies slightly by asset and position size, so LabelYX's calculator uses a simplified estimate (entry price adjusted by 1 ÷ leverage) so you can gut-check a position in seconds. Treat it as a close planning estimate, not the exchange's exact final number.

Step-by-step: estimating your liquidation price

1. Open the Position & Liquidation Calculator, no account or wallet connection needed.
2. Choose Long or Short, then enter your leverage (1×–50×), entry price and position size.
3. Read the PnL tab. Est. Liq Price and Liq Distance update instantly as you type, alongside required margin and notional value.
4. Enter a target exit price to see projected PnL and ROE at that price before you trade.

Margin, breakeven and funding: the other three numbers that matter

Liquidation price alone doesn't tell you whether a trade is worth taking. The calculator's other tabs cover the rest:

• Break-Even Price: the price move needed just to cover Hyperliquid's taker fee (0.035% per side, 0.07% round-trip) before you're in profit.
• Funding Cost: perpetuals pay or receive funding every 8 hours. The calculator projects your funding cost or income per day, week and month at a given rate, so a "free" leveraged position doesn't quietly bleed money while it's open.
• Position Sizing: instead of picking a size first, enter your account balance, risk per trade (%) and stop-loss distance (%) to get a risk-based position size and effective leverage.
• Average Down: model a new blended entry price and total size if you add to an existing position at a different price.

Why estimate before you trade

A losing trade you close on your own terms and one the exchange closes for you at the worst possible moment can be the same size on paper and feel completely different in practice. Checking liquidation distance, breakeven and funding cost before opening a position takes seconds and costs nothing.