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
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