How Liquidations Work on LeverUp | LeverUp Podcast episode artwork

EPISODE · May 29, 2026 · 11 MIN

How Liquidations Work on LeverUp | LeverUp Podcast

from LeverUp Radio

Liquidation is the most misunderstood risk in leveraged trading. People know it can happen. Most don't know exactly when — or why. This episode fixes that with the actual math.We cover the maintenance margin threshold (15% on LeverUp), the precise formula for calculating liquidation price for both long and short positions, and a worked example from entry to liquidation — including how the buffer shrinks as leverage increases. At 10× leverage, BTC needs to fall 8.5% to liquidate. At 100×, 0.85%. The math is not negotiable.The episode also explains why oracle quality is directly connected to liquidation fairness: how stale price feeds create wick liquidation risk, and how Pyth Pro's substantially lower measured staleness helps reduce that problem. Plus the five practical levers for staying out of liquidation range: position sizing, knowing your liquidation price before entry, stop-losses above liquidation, watching funding rate direction, and adding collateral or reducing size under pressure. The episode closes with a note on zero-fee closes for losing positions at 500–1001× leverage.Figures mentioned reflect data at time of recording — check app.leverup.xyz for current rates and metrics.Links:- Trade on LeverUp: https://app.leverup.xyz- Full article: https://blog.leverup.xyz/how-liquidations-work-on-leverup/

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How Liquidations Work on LeverUp | LeverUp Podcast

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This episode was published on May 29, 2026.

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Liquidation is the most misunderstood risk in leveraged trading. People know it can happen. Most don't know exactly when — or why. This episode fixes that with the actual math.We cover the maintenance margin threshold (15% on LeverUp), the precise...

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