I now see lending and borrowing more and more as a "fire drill." When the liquidation line is three steps away from the red line, don’t think about whether there will be a rebound or not. First, pull yourself out of the obsession that "it must be right." My habit is to first look at what I am betting on: whether I am betting on less volatility or on the price going back in a straight line. Honestly, both are very fragile.

When it’s really close to the line, I’d rather reduce some positions first, add some margin to widen the gap, even if I take a big loss, it’s better than being pierced through by a single needle. There’s also a small move: withdraw some collateral to a safe address if possible, don’t stack everything in one place. Fewer operations during chaos mean fewer mistakes.

Recently, looking at the trend of blockchain games that are experiencing maximum inflation and spiral downward as soon as studios withdraw, it’s actually quite similar to liquidation: on the surface, it still seems to be turning, but the underlying layer is already thinning rapidly. Anyway, my current principle is: the closer to the red line, the fewer illusions I have. Survive first, then talk.