I just came across a post about a liquidation line getting close, and it suddenly reminded me of the lesson I learned from that run last year. When you’re three steps away from the red line, people always inexplicably get overexcited, thinking they can still hold on a bit longer—then they end up getting swept away by a wave. Later I talked to a friend, and he said: this isn’t about defeating liquidation; it’s about practicing living with risk—which is a pretty clever metaphor.

Anyway, my strategy now is simple to the point of being a bit dumb: set alerts, and when the collateral ratio reaches 120%, start repaying loans in batches, or just cut the position. Don’t wait until the red line lights up to think of a plan—by then, your brain is rusty. Recently, ETF fund flows and the up-and-downs of the US stock market are always being discussed together; when macro sentiment tightens, on-chain liquidation volumes tend to pile up more easily, and it looks pretty unsettling.

To be honest, when all your attention is on “don’t blow up,” you can end up missing whether your position size itself is already too large. Gradually turn risk management into a habit first—because that’s stronger than anything else.