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.