How to Prevent Forced Liquidation in Crypto Futures

When trading cryptocurrency futures on centralized exchanges, maintenance margin is the minimum amount of equity required to keep a leveraged position open. If the mark price reaches your liquidation price, the exchange's risk liquidation engine automatically seizes your collateral.

Using 50x or 100x leverage reduces your liquidation buffer to under 1.5%, which can be triggered by standard exchange spread wicks. Professional crypto traders limit leverage to 5x – 10x and set hard stop losses above the liquidation barrier.