johnjn
Member
Risk models in perpetual DEXs include maintenance margin formulas, dynamic funding rate adjustments, and insurance fund sizing. Protocols quantify exposure through open interest, volatility, and oracle reliability. Dynamic margin recalibration may be used during high volatility to reduce cascade liquidations.
Insurance funds absorb shortfalls when liquidations cannot cover bad debt, and risk limits prevent overly concentrated positions. Weak risk designs can threaten solvency and user trust on any decentralized perpetual futures platform.
Learn about risk frameworks in perpetual futures exchanges
Insurance funds absorb shortfalls when liquidations cannot cover bad debt, and risk limits prevent overly concentrated positions. Weak risk designs can threaten solvency and user trust on any decentralized perpetual futures platform.
Learn about risk frameworks in perpetual futures exchanges