It does seem a bit scammy though when the leverage is 10x, which should mean liquidation at 10% (or maybe 9% if interest is taken into account, on a short term trade lasting under 1 day) yet the real liquidation price is at only -5%. An altcoin can drop 5% in no time, even BTC can.
It might seem scammy or unfair but that's the whole point of margin trading. A coin can as well increase by 5% in hours, you earn quick massive profits and won't even care how the borrowed amount helped you
![Grin](https://bitcointalk.org/Smileys/default/grin.gif)
There are standard formulas used to calculate the liquidation price in case you are interested
Inverse Contract Long Liquidation Value = Open Value – Maintenance Margin + Initial Margin
Liquidation Value = Open Value – Open Value x Maintenance Margin + (Open Value/Leverage)
Liquidation Price = (Contract Quantity x Contract Size)/Liquidation value
Inverse Contract ShortLiquidation Value = Open Value + Maintenance Margin – Initial Margin
Liquidation Value = Open Value + Open Value x Maintenance Margin – (Open Value/Leverage)
Liquidation Price = (Contract Quantity x Contract Size)/Liquidation value
Linear Contract Long Liquidation Value = Open Value + Maintenance Margin – Initial Margin
Liquidation Value = Open Value + Open Value x Maintenance Margin – (Open Value/Leverage)
Liquidation Price = Liquidation Value/(Contract Quantity/Contract Size)
Linear Contract ShortLiquidation Value = Open Value – Maintenance Margin + Initial Margin
Liquidation Value = Open Value – Open Value x Maintenance Margin + (Open Value/Leverage)
Liquidation Price = Liquidation Value/(Contract Quantity/Contract Size)
More info:
https://phemex.com/user-guides/liquidation-price