The Italy international was charged under FA rule E3(1) for a post which appeared to contain anti-Semitic and racist references.
The picture posted by Mario Balotelli on Instagram Balotelli forwarded on a picture produced by someone else
The 24-year-old has written a letter in mitigation to the governing body and has not requested a personal hearing.
Liverpool hope his explanation could lead the FA to fine, rather than ban, the forward.
Balotelli reposted an image of computer game character Super Mario on Instagram, which included the words "jumps like a black man and grabs coins like a Jew."
The former Manchester City forward tweeted to deny the post was offensive, before apologising.
Balotelli has missed Liverpool's last six games with a groin injury but could return to their squad for Sunday's game against Manchester United at Old Trafford.
He has scored only two goals in his 14 appearances for the club since signing from AC Milan in the summer.