Liquidation Price Calculator
Calculate when your collateral gets liquidated
Position Details
Amount of tokens deposited (e.g., 1 ETH)
Current market price per token
Total borrowed amount
Protocol's minimum collateral ratio
Liquidation Scenarios
ETH Flash Crash
1 ETH at $3k, borrowed $2k. Liquidation at $3k × 150% / 1 = $3k... wait that's wrong. Correct: $2k × 1.5 / 1 = $3k. ETH drops to $2.9k. Liquidated. Lost $3k ETH to repay $2k loan plus $300 penalty. Net loss $1.3k.
Safe Buffer Zone
10 ETH at $3k = $30k. Borrowed $10k. Liq price: $10k × 1.5 / 10 = $1.5k. ETH can drop 50% before liquidation. Comfortable margin. Set alert at $2k to add collateral if needed.
Overnight Liquidation
5 BTC at $40k = $200k. Borrowed $130k. Liq: $130k × 1.5 / 5 = $39k. BTC at $40k, only $1k buffer. Went to sleep. BTC dropped to $38k overnight. Woke up liquidated. Lost $200k to repay $130k.
Price Alert Saved Position
2 ETH at $3k, borrowed $3k. Liq: $2.25k. Set alert at $2.5k. Price hit $2.6k, alert triggered. Added 0.5 ETH collateral. New liq: $3k × 1.5 / 2.5 = $1.8k. Avoided liquidation.
Stablecoin Advantage
$50k USDC collateral, borrowed $30k. Liq price: $30k × 1.5 / 50k = $0.9. USDC stays at $1. No liquidation risk from price. Only depegging risk. Much safer than volatile collateral.
Multiple Collateral Types
Mixed: 1 ETH ($3k) + 0.1 BTC ($4k) = $7k total. Borrowed $4k. Each has different liq threshold. ETH 150%, BTC 140%. Calculate separately. ETH liq: lower. Monitor both prices independently.
Frequently Asked Questions
How to calculate?
Liq Price = (Loan × Threshold) / Collateral Amount. $10k loan, 1 ETH, 150% = $15k liquidation price.
What happens?
Protocol sells collateral to repay loan. You lose collateral plus 5-15% penalty. $20k collateral liquidated for $10k loan.
Can I stop it?
Yes. Add more collateral or repay part of loan before price hits liquidation level. Set price alerts.
Liquidation penalty?
5-15% of collateral value. Aave: 5-10%. Compound: 8%. MakerDAO: 13%. Goes to liquidators as incentive.
Safe buffer?
Keep 30-50% above liquidation price. If liq at $2k, stay above $2.6k-$3k. Gives time to react to volatility.
Partial liquidation?
Some protocols liquidate 50% of position, not all. Aave does partial. Others liquidate entire position. Check protocol docs.
No comments yet. Be the first to share your thoughts!