I’m not great at dancing on the edge of liquidation, but after stepping into a few traps near the red line, I actually think that when you’re three steps away from the red line, the most important thing to do is—don’t panic and add more to your position first.

Earlier, I had a case of on-chain lending. I could see the liquidation line had only 3% left. My first reaction was to quickly transfer funds in to build a safety cushion. But gas fees were high, the transfer was slow, and in the end I just didn’t make it—so I lost money on the transaction fees instead. Later, when I looked back, I realized that when you’re three steps away from the red line, what you really should do is: **first figure out exactly how much buffer you have left, then decide whether to manually top up or just reduce your position in advance**.

Lately, AI Agents and automated trading have been getting a lot of hype, but to be honest, I’ve seen plenty of automated scripts get stuck during liquidation because of contract interactions. On-chain security isn’t something you can bypass just by good storytelling. Anyway, as a lazy person, I trust either watching things manually, or setting a simple alert notification. The rest is left to position management itself.

(Don’t ask why I bring up failed cases again—well, I only remember because I’ve lost money.)