Hyperliquid leverage and liquidation
Hyperliquid offers up to 40x leverage on major markets. You're liquidated when your account equity falls below maintenance margin. Here's how it works and how to avoid it.
Maintenance margin
Per the official docs, maintenance margin is half the initial margin at max leverage. It ranges from 1.25% (40x markets) to 16.7% (3x markets), depending on the asset.
Cross vs isolated margin
| Cross | Isolated | |
|---|---|---|
| Collateral | Shared across positions | Only the margin you assign |
| If liquidated | Can wipe your whole cross balance | Only that position's margin |
| Good for | Hedged or experienced traders | Beginners, single bets |
What happens in a liquidation
- Order book first: the position is sent as market orders to the book.
- Backstop: if equity drops below two thirds of maintenance margin, the liquidator vault (part of HLP) takes over the position, and the maintenance margin is not returned.
- Large positions: above 100k USDC, liquidation happens in 20% chunks.
Liquidations use the mark price, which blends external exchange prices with Hyperliquid's book, so it can differ from the last traded price in volatile markets.
How to avoid liquidation
- Use low leverage, such as 2x to 5x, especially when starting.
- Use isolated margin for individual trades.
- Always set a stop loss.
- Watch your liquidation price shown in the position panel.
- Add margin or reduce size before the price gets close.
FAQ
What is the max leverage on Hyperliquid?
Up to 40x on major markets; lower on others, down to 3x.
Does lower leverage change my liquidation price in cross margin?
In cross margin the liquidation price depends on your available collateral rather than the leverage setting; in isolated margin it depends on leverage.
Do I lose everything when liquidated?
In isolated margin you lose that position's margin. In cross margin a backstop liquidation can take your whole cross balance.