Gate Square “Creator Certification Incentive Program” — Recruiting Outstanding Creators!
Join now, share quality content, and compete for over $10,000 in monthly rewards.
How to Apply:
1️⃣ Open the App → Tap [Square] at the bottom → Click your [avatar] in the top right.
2️⃣ Tap [Get Certified], submit your application, and wait for approval.
Apply Now: https://www.gate.com/questionnaire/7159
Token rewards, exclusive Gate merch, and traffic exposure await you!
Details: https://www.gate.com/announcements/article/47889
What is the risk geometry of Bitcoin securities? From clearing mechanisms to liquidity runs
【Crypto World】Bitcoin-backed securities products hide multiple risks. These tools, which use Bitcoin as collateral, face direct impacts from price fluctuations. Even more dangerous is that when the market suddenly turns sharply downward, the liquidation trigger mechanism can instantly amplify losses—one trigger point could trigger a chain reaction.
This is not alarmist. The successive bankruptcies of cryptocurrency lending institutions have sounded the alarm, and the 49% plunge of Bitcoin in March 2020 is a vivid lesson. Complex financial products layered with counterparty risk exposure, if not handled carefully, can lead to systemic risk.
Ultimately, participating in such products requires more cautious financing strategies and a more comprehensive risk management system. It’s not just about looking at returns; details like liquidation clauses, margin ratios, and liquidity mechanisms in the procedures must be closely monitored. The market is teaching us that greed is the most expensive tuition.