Recently, a lot of people only seem to focus on the “liquidation line,” but the truly dangerous part is sometimes the few minutes of delay in the oracle price feed. You think the price has already bounced back, but your position is still being calculated for health using the old price. And liquidation bots don’t show any sympathy—once triggered, they simply auction off / liquidate a portion of your position… To put it plainly, on-chain it acts based on the “price it sees,” not on the K-line on your phone.

There’s another pitfall: some oracles have low update frequency. When there’s wild volatility, there may be a brief deviation, and liquidation protection and stop-loss measures can all fail. Haven’t people also been complaining recently that on-chain data tools and the label system lag—or can even mislead you? The logic is pretty much the same: the “truth” you see may be half a beat late, but the robots are never late.

I personally try not to top off my positions too much—especially when using those protocols with oracle feed sources that don’t update very often. I’d rather use a bit less leverage and sleep soundly… Let’s talk again next time.