Calculation Methodology

CryptoRiskCalc uses standard risk-based position sizing with transparent formulas. This page explains the assumptions and how each output is derived.

Key assumptions

• Linear USDT perpetuals are the default contract type.
• Maintenance margin rate is estimated at 0.5% unless stated otherwise.
• Fees are estimated as taker fees on entry and exit.
• Rounding follows exchange tick size and quantity step rules.

Position size formula

Risk Amount = Account Balance × (Risk% / 100). Short positions use the same absolute distance.

Rounding & precision

We use decimal precision to avoid floating point errors and round quantities to the nearest allowed step size.

Fees & liquidation estimate

Liquidation price is an estimate and depends on exchange tiers, fees, and funding. Always verify with your exchange before entering a trade.

Quick example

• Balance: $1,000, Risk: 1%, Entry: $100, Stop: $97.5
• Risk Amount = $10, Stop distance = $2.5
• Position Size = $10 / $2.5 = 4 units