$ZEC Why is contract trading always prone to liquidation? Many people say it's because the market isn't good, but the real issue lies in a lack of understanding of the rules.$BEAT $RVV

A friend once complained that he was completely correct about the direction of his orders, endured four days, only to be eaten up by funding fees for a total of 1000U, and finally got liquidated. When the market truly moves, he can only watch in frustration. This isn't a technical problem; it's a trap set by the rules.

**Funding Fees Are Slowly Draining Your Capital**

Most people only focus on candlestick charts and don't notice that funding fees are constantly deducting from their account. Funding fees are settled every 8 hours, and when the rate is positive, you have to pay. Going all-in long isn't wrong, but continuous funding fee deductions can eat into your margin, eventually leading to liquidation.

How to avoid the trap? Try to avoid high-fee periods, keep your position holding time under 8 hours; or stand on the side where funding fees are favorable to you.

**Liquidation Price Is Closer Than You Think**

Many people think that with 10x leverage, a 10% drop will cause liquidation, but in reality, a 5% drop can wipe you out. This is because the platform also adds liquidation fee costs when calculating the liquidation price; what you see is only the surface number.

Practical approach: don't operate with full margin, prioritize isolated margin mode; keep leverage between 3 to 5 times, and leave enough buffer in your margin. That way, you have a way out.

**High Leverage Is a Double-Edged Sword**

100x leverage looks tempting, but the larger the borrowed amount, the higher the costs for fees and funding. Even if your direction is correct, profits can be completely eaten up by these costs.

Remember one thing: high leverage is only suitable for ultra-short-term trading; low leverage is the key to longevity. Making money in contracts is never about guessing the right direction but about thoroughly understanding the rules. Exchanges aren't afraid of you losing money; they're afraid that you see through their logic. To survive long-term in this market, you first need to learn how to avoid pitfalls.