When it comes to lending and borrowing, the moment the liquidation line is just three steps away from me, I start to panic... but I can only deal with it honestly. To put it bluntly, first don’t think about “making another quick profit.” Pull the red line farther back: either add some margin / pay back part of it to bring your position down; or simply admit the loss and close the position—saving your life is more important than face. The truth is, the worst part is still imagining a rebound—when your hand shakes, the system liquidates your position for you, and you don’t even get any choice.

Lately, I’ve also felt some resonance after seeing the criticism of that yield-stacking approach with re-pledging and shared security, calling it “matryoshka doll” returns. After all, the returns look sweet, but the risks stack up layer by layer—when volatility hits, liquidation comes even faster. Take it slow—keep leverage lower, and you’ll sleep more soundly.