Liquidation Price vs Maintenance Margin

The mark price at which a leveraged position is automatically closed by the exchange to recover borrowed capital; for longs, Entry Price × (1 − 1/Leverage + Maintenance Margin Rate); for shorts, Entry Price × (1 + 1/Leverage − Maintenance Margin Rate).

The minimum margin balance required to keep a leveraged derivatives position open; when the margin balance falls to this level, the exchange triggers automatic liquidation; typically 0.5% of notional value for standard-sized positions on major exchanges.