ok guess everyone's decided getting liquidated is cool again
(obviously not, that's sarcasm. FTX has very low liquidation rates.)
Conversation
I’ve wondered why FTX liquidations are so much lower. I know the volume is lower than Binance, or than Mex once was. Proportionately I’d imagine they’re still quite low. Risk limits are more restricted? Alameda is majority of the book? What’s the theory here?
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1) generally people use lower leverage
2) partial liquidations often prevent full liquidations
3) much higher liquidity : volume ratio, so liquidations are less likely to print the book at lot and self-perpetuate
4) reputation: MEX/etc. is where you go to yolo
U forgetting that non btc collateral as well. Less likely for longs with usd collat to get liqqed