I'm currently watching my lending positions closely at the liquidation line. When I'm still three steps away from the red line, I usually don't gamble on luck: first, split the position into smaller parts, pay off a little debt to move the line down, then transfer the collateral that can be moved to a more stable side (anyway, I have a lot of wallets, moving assets back and forth isn't a hassle). Then, I make the alert threshold more sensitive so I won't be caught off guard when the chain starts to get crowded. If I really can't hold on, I accept some losses and break even on part of it—losing a little sleep is better than risking a complete liquidation… Recently, I've been feeling quite emotional about the NFT royalty disputes; when secondary liquidity tightens and emotions run high, even the lending market cools down. Forget it, I’ll just keep my red line further away.

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