I now have a small habit with my lending positions: when the liquidation line is within three steps of me, I treat it as an alarm going off. Don’t think about “a rebound will be fine” yet. The first step is to widen the health factor a bit; if I can add some margin, I do it. If I can’t, I reduce my position first, cutting off the part that takes up the most. The second step is to review the interest rate and the borrowed currency; sometimes it’s not the price that’s scary, but the interest slowly pushing you over the edge. The third step is to turn off all automated features, think carefully before turning them back on, and avoid letting robots set the pace when you’re most panicked.

Recently, there’s been talk about tax increases and compliance tightening and loosening at times. Expectations for deposits and withdrawals change, making market sentiment more prone to swings… Honestly, during times like these, I’d rather keep the liquidation line at a safe distance and earn less but sleep peacefully. Let’s take a look again.