Fren who just started with contracts, have you ever encountered this ghostly thing: the account clearly shows only a small loss, yet the principal instantly drops to zero? Don't doubt life, this is the cruel truth of high leverage play.

A couple of days ago, I took a tumble. I invested 222U as principal, opened a position of 200U, and shorted with 125x leverage, entering at a price of 2950. As a result, the price shot up to 2965, and the system directly liquidated my position. Looking at the position record, I lost 127U—logically, 222 minus 127 should leave me with 95U, right? Where did that 95U go? Staring at the account balance dropping to zero, I finally understood what it means to be harvested by leverage.

**How did the 95U evaporate?**

Liquidation is not as simple as the arithmetic you think. With 125x leverage, the actual value you are leveraging with your 200U is 25,000U. As long as the market fluctuates in the opposite direction by 0.5%, the margin will not be able to hold.

Liquidation is executed like a combination of punches: once the price touches the line, the system will not gently deduct only the "loss portion" from you—

First cancel all your pending orders
Hedging positions offset each other
Tiered liquidation, cutting your position bit by bit
The final liquidation takeover will forcibly liquidate the remaining positions at the "bankruptcy price".

Throughout the entire process, slippage takes a bite, fees take a bite, and insufficient liquidity cuts a slice. The actual closing price is often worse than the theoretical liquidation price. What about your vanished 95U? A part has long been locked as maintenance margin, and another part has been taken away in these stages.