Start with exposure, not the margin deposit
Enter the total notional value of one linear position at entry. Quantity = entry notional / entry price. Modeled initial margin = entry notional / leverage. The calculator fetches a spot reference and compares it with entry; it does not read your exchange account.
For an illustrative $10,000 notional, $50,000 entry, 10× leverage and $52,000 reference, quantity is 0.2 coins, initial margin is $1,000 and long gross P&L is $400. Return on initial margin is 40%. At 5× with the same notional, P&L remains $400 while modeled margin rises to $2,000.
Interpret the zero-margin boundary correctly
For a long, zero-margin reference = entry × (1 − 1/leverage). For a short, use entry × (1 + 1/leverage). Bybit documents this form as an isolated linear-contract bankruptcy reference. Its cross-margin explanation depends on account-wide information. This page does not implement those account calculations.
At $50,000 entry and 10×, the long reference is $45,000. A $44,000 quote is $1,000 beyond it, so signed distance is negative. An absolute-value distance would hide that crossing. A real venue may already have liquidated the trade because it requires maintenance margin before modeled equity reaches zero.
Equity ratio is a model output, not a risk rating
Modeled equity = initial margin + gross P&L. The displayed ratio divides that amount by entry notional. It has no maintenance requirement or collateral haircut, and cannot determine account health. Fees, funding, contract mark prices, extra collateral and other positions require separate inputs and rules.
Read the relevant contract and account terms before comparing the reference with a stop or margin plan. This calculator does not recommend a leverage level, guarantee a stop execution price, or cap the loss at the entered margin.