What Is the Risk of Liquidation When High Leverage Is Used in Crypto Futures Trading?

The risk is extremely high. High leverage means a small adverse price movement against the position can quickly deplete the margin collateral.

When the margin falls below the maintenance level, the exchange automatically liquidates the position to prevent the account balance from going negative. For example, 100x leverage means a 1 percent move against the position can wipe out the entire margin.