Liquidation refers to an event when margin level hits the maintenance margin, and the position has to be closed and you lose all your maintenance margin. It is triggered when the Mark Price hits the Liquidation Price. The Base value maintenance margin for perpetual contracts at Bybit is 0.5% for BTC and 1% for ETH, EOS and XRP. Margin requirements will increase or decrease accordingly as risk limit changes.
Liquidation price is calculated based on your Leverage, Maintenance Margin and Entry Price.
Calculation of liquidation price
For long position
Example: Trader A buys long at 8,000 USD while using 50x leverage.
For short position
Example: Trader B sells short at 8,000 USD while using 50x leverage.
*Note: For long position, the liquidation price will be rounded up to the nearest 0.5 decimal place or integer while for short position, the liquidation price will be rounded down to the nearest 0.5 decimal place or integer.