Skip to main content

Does the Fee Structure Affect the Bankruptcy Price Calculation?

Yes, the fee structure affects the bankruptcy price calculation. Trading fees (taker/maker) and any incurred funding fees are deducted from the trader's margin, which slightly moves the bankruptcy price closer to the entry price.

The cumulative effect of fees reduces the effective buffer against liquidation.

What Is the Relationship between Leverage and Bankruptcy Price Proximity?
How Is the Bankruptcy Price Calculated for a Long Position?
How Does Delta Change as an OTM Call Option Moves Deeper OTM?
How Does the ‘Liquidation Price’ Change with Varying Leverage Levels?