Liquidation Price vs Margin Ratio

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 current margin balance divided by the maintenance margin requirement, expressed as a percentage; when the margin ratio reaches 100%, the exchange triggers liquidation; real-time monitoring of margin ratio is the core operational discipline for managing leveraged positions.