Let's say you open a 10x long position at:
Entry Price = 8.458 USDT
Leverage = 10x
Margin Type = Isolated Margin
Maintenance Margin Ratio (MMR) = 0.5%
Liquidation Price Formula:
Liquidation Price = Entry Price × (1−1Leverage+MMR)
Liquidation Price = 8.458 × (1−0.10+0.005)
Liquidation Price = 8.458 × 0.905
Liquidation Price = 7.651
If the asset price drops to 7.651 USDT, your position will be liquidated.
? How Much Can the Price Drop Before Liquidation?
Price Difference = Entry Price - Liquidation Price
Price Difference = 8.458−7.651
Price Difference = 0.807 USDT
So, a drop of 0.807 USDT in the asset price would wipe out your 10x margin in this example.