It is extremely important to establish hazard maps showing earthquake-induced displacements, safety factors and probabilities of failure. The combination of pseudo-static method and displacement-based method is commonly used to evaluate the stability of gangue slope. Conventional calculations are formulated in terms of a linear Mohr–Coulomb (MC) failure criterion. However, experimental data shows that the strength envelops of almost all types of rocks are nonlinear over the wide range of normal stresses. In this paper, the nonlinear failure criterion is introduced. The resulting safety factor and permanent displacement are discussed and demonstrated using several real earthquake records.