Liquidation Price Calculator

How to Use the Liquidation Price Calculator

The Liquidation Price Calculator helps you determine the price at which your position in a decentralized exchange will be liquidated. Follow these steps to use the calculator:

1. Enter your Entry Price. This is the price at which you initially bought or entered your position.
2. Enter your Collateral Ratio. This is the minimum percentage of collateral required to maintain your position. For example, a 150% collateral ratio means you need to have 150% of the value of your loan as collateral.
3. Enter your Loan Amount. This is the amount you borrowed in USD.
4. Click the Calculate button to determine the liquidation price.
5. The calculator will display the Liquidation Price, which is the price at which your position will be liquidated if the market price falls below this level.

Understanding the Liquidation Price

The liquidation price is calculated based on the loan amount and the collateral ratio. If the market price of the asset in your position falls below the liquidation price, your position will be liquidated to cover the loan amount.

For example, if you have a loan amount of $1,000 with a collateral ratio of 150%, the liquidation price would be $1,000 / (150 / 100) = $1,000 / 1.5 = $666.67. If the market price of the asset falls below $666.67, your position will be liquidated.

Important Notes

Liquidation prices are theoretical and depend on market conditions. It's important to monitor your positions and maintain sufficient collateral to avoid liquidation. Always do your own research and consult with a financial advisor if needed.