HYPEHYPEHyperliquid
$77.56
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+0.82%
20 Sep, 08:36

Advocacy for Hype Exchange's Tiered Liquidation Feature

Bullish-14.73%

AI Summary

The author criticizes Binance's aggressive liquidation rules and advocates for supporting Hype exchange due to its user-friendly tiered liquidation mechanism.

There are still many rules in the crypto space that are extremely unfriendly to users. Everyone just does it this way, so no one takes the initiative to be user-friendly. For example, contract liquidations on Binance. If you open a position with 10,000 USDT, your entire position gets liquidated when your net value drops to 2,000-3,000 USDT. Market price liquidation leaves you with nothing left over. This is what people call liquidation. But is this really fair? Given the current market depth, market price liquidation should leave users with 2,000-3,000 USDT. Even if you haven't placed a stop-loss order, your account should still have a balance. But those who have experienced liquidation know don't leave any money for you. They claim it's for covering margin calls during liquidation fund shortfalls. Margin calls are something exchanges should cover with fees. Why use user account balances to cover them? Has anyone improved this? Yes. Hype uses a tiered reduction mechanism. I've opened small positions on Hype with floating additions. I forgot to set take-profit or stop-loss orders. After liquidation, I lost more than my principal. I checked the trade history; when prices drop, Hype proactively closes positions for you. You might say, can't Binance do these things? No, it's because they lack the motivation to do so. They claim to act in users' best interests, screaming their slogans from the rooftops. But when faced with actual profits, those slogans are nonsense. They want to make money from your liquidation down to zero. However, you can at least partially avoid total liquidation. For instance, placing a stop-loss slightly above the liquidation price beforehand can preserve most of your principal. New users might not know this and could get scammed once. I've executed thousands of trades with bots, and I haven't been scammed. Just imagine how many traps await new users. Hype must rise and succeed. It doesn't matter if you're a beginner; it will proactively help you implement tiered stop-losses. We need to support new platforms because monopolies are indeed detrimental to users. From an industry perspective, second and third places must exist. "Big stores bully customers" is a real phenomenon. I have 130,000 Twitter followers, lost tens of thousands of USDT being scammed, tried to debate Binance's product team, but they ignored me. You can imagine how little chance retail investors have to speak up and defend their rights in such situations.

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