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Mark Price vs Last Price: Which One Can Liquidate You?

CryptoToolDeck · Editorial policy

The last-traded-price candle is not necessarily the price reference used for liquidation. Check the contract and margin mode. In Bybit’s isolated-margin example, liquidation is triggered by mark price reaching the position’s liquidation price. Its cross and portfolio modes instead use an account-level maintenance-margin threshold.

Those are venue-specific rules, not a universal liquidation formula. Bybit describes the distinctions in its order-execution and liquidation FAQ. If you use another exchange, use that exchange’s current contract documentation and account risk display.

Last, index and mark answer different questions

Conceptual roles; formulas depend on the product
ReferenceWhat it representsWhat not to assume
Last traded priceThe price of the most recent execution in that market.That another trade of your size can execute there now.
Index priceA reference derived from selected underlying markets.That it is the bid or ask on your contract’s order book.
Mark priceA calculated contract reference used in risk and valuation rules.That it is a guaranteed closing price.

Bybit’s P&L FAQ explains why last-price and mark-based unrealized results can differ. A displayed estimate is not a completed sale. Execution price, fees and other charged cash flows still determine the closed trade’s result.

A stop can watch one price while liquidation watches another

Consider a fictional isolated long with an exchange-displayed liquidation price of 90 USD and a stop set to trigger at a last price of 92 USD. At a particular instant, suppose the last price is 93 while the mark is 90. A last-price stop has not met its 92 condition, yet the mark has reached the illustrative liquidation threshold.

This example explains the reference mismatch; it does not claim these prices or thresholds belong to a real contract. Switching to a mark-price chart may explain what happened, but does not undo it. Bybit explicitly warns that a mark-triggered liquidation may not appear on its default last-price candlestick chart in the isolated-margin liquidation documentation.

Choosing a mark-based stop, where supported, removes that particular reference mismatch. It does not guarantee a timely fill or make placing a stop near liquidation safe. The stop still activates an order whose execution can differ from the trigger. See Stop-Market vs Stop-Limit for the separate execution problem.

Do not reuse an isolated-position shortcut for a whole account

Bybit’s isolated-mode process evaluates an allocated position separately; its formula includes maintenance margin and contract-specific adjustments, not just entry divided by leverage. The same reference distinguishes linear and inverse contracts. A calculator that silently substitutes one model for the other can produce a plausible but unsuitable number.

For cross or portfolio margin, first inspect the account-level risk measure and the positions or collateral included in it. Bybit’s FAQ gives an account maintenance margin ratio of 100% as its threshold for these modes. That is why this guide does not supply a universal “entry ± 1/leverage” liquidation answer.

What to record when a liquidation surprises you

  1. Exact product: record the contract symbol, settlement asset and whether it is linear or inverse.
  2. Margin mode: capture whether the position used isolated, cross or portfolio margin at the time.
  3. Time and reference: compare the event timestamp with the correct mark, index or last-price history—not only today’s chart.
  4. Orders and executions: preserve stop settings, trigger source, status, filled quantity and liquidation records. Separate a rejected order from an order that triggered but did not fully fill.
  5. Account cash flows: check the relevant fee and funding history before equating a chart move with the entire balance change.

Our Funding Fee Calculator can reconcile manually entered settlement assumptions; it does not reconstruct your exchange’s margin engine. For a disputed event, send the records through the venue’s official support channel. A screenshot alone cannot establish whether the exchange followed the contract rules.

Educational information, not a wallet audit, transaction validation or personalised financial advice. Service support and interfaces can change. Report an error with the page URL; never send recovery phrases or private keys.