But in a big crash, these premiums invert and the shorts can end up owing the funding rate to the longs. If you’re short the fixed maturity and the premium inverts, that’s an opportunity to close at a higher return.
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Your 1x leveraged short is the senior tranche but once you've blown through the equity, junior and mezz things start looking a little dicey.
All the tranches below you, who are now long in a falling market, are doing to start trying to close out their risk asafp and pushing the market down further.
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I’m not sure the exchange details are available to answer those questions. But the same questions exist for any traditional exchange.
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Most exchanges only socialize losses among members, not among anyone with an account (and most futures exchanges have *much* higher margin reqs than crypto derivatives exchanges which alleviates a lot of the risk)
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