When the lending position is close to the liquidation line, I usually first take my hand off the keyboard... The more urgent, the easier it is to make a wrong move. First, check on-chain if there is really an increase: whether the funds are coming in to buy the dip, or if the lending is just stepping on each other. To put it simply, don’t rely on a “rebound to save me,” that’s emotion, not a plan.

The few things I do are: first, reduce some leverage to keep the red line away from me; or add some margin, but only up to the loss range I’m willing to accept, don’t put my living expenses at risk later. If that’s not enough, admit defeat and close the position, go to sleep. Long-term survival depends not on talent, but on habits: every time I get close to the red line, automatically reduce risk and stop.

Recently, the disputes over privacy coins and mixing coins, the regulatory boundaries, have been very intense. Watching this makes me even less willing to keep my position on “just in case nothing happens.” When rules are unclear, the liquidation line is actually the clearest. That’s all for now.