Liquidation

Liquidation occurs when a trader’s collateral is no longer sufficient to cover their leveraged position’s losses, triggering an automated forced closure by the exchange's liquidation engine. It is a critical risk-management mechanism that ensures the solvency of lending protocols and derivative platforms. In 2026, the focus has moved toward MEV-resistant liquidation models that protect users from predatory "cascades." This tag provides essential information on maintenance margins, health factors, and how to avoid liquidation in high-volatility environments.

14621 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
New coin issuance platform Soar: rejecting air coins and reconstructing token issuance logic with contractual constraints

New coin issuance platform Soar: rejecting air coins and reconstructing token issuance logic with contractual constraints

By Eric, Foresight News An account named X was registered two months ago. The token issuance platform Soar, which has less than 2,000 followers, became popular because of an article with over 350,000 views (https://x.com/LaunchOnSoar/status/1965476405455864175). In this article, Soar openly criticizes the current chaos in the cryptocurrency market, pointing out three important issues: the issued tokens have no real value, the lack of transparency in token sales, and the founders have no motivation to focus on long-term value because their holdings are too low. Soar is attempting to revolutionize the industry with a patent-pending token standard and a new platform. Currently, the project team has only provided a conceptual overview of the new token standard and has stated that further explanation will be provided before its official release. For now, I will describe Soar's operating mechanism based on the information currently available. Soar's new token standard is called DRP (Digital Representation of Participation), which roughly translates to "digital representation of participation." Soar offers a rather obscure explanation of the DRP mechanism: Tokens deployed through the DRP standard are not, and will never be, any form of equity, either in nature or in fact; They represent only certain value relations: values that are retained, or that should be attributed elsewhere; This relationship is governed by a private contract (the “Agreement”) between the party deploying the tokens (the “Issuer”) and the entity providing access to the DRP Standard (the “Provider”); Under the DRP standard, the issuer loses a certain amount of value when deploying tokens, but can regain that value at any time by reclaiming the tokens; After the initial deployment, the Issuer must wait for a period of time before releasing any of the Tokens it holds onto to the market (the “Holding Period”); After the Holding Period, whenever the Issuer releases previously held Tokens, it must clearly disclose to the outside world the number of Tokens it intends to release and the reasons for the release ("Disclosure"); After any disclosure, the issuer must wait for a further period before releasing the tokens to the market; At any point in time, the agreement automatically reflects the relative value between the issuer and the provider, and has specific trigger conditions ("events"), once triggered, the relevant value will be automatically settled between the two parties; The DRP standard also includes many other mechanisms/features to improve transparency, strengthen accountability, and create a balance of incentives between token holders and issuers. Under this standard, the company acts as the token issuer and Soar acts as the DRP standard provider: The company itself holds a certain number of such tokens, which represents the value retained by the company at any point in time; The portion of tokens not held by the company at any point in time (i.e., held by external parties) corresponds to the value that the company no longer retains or controls at that point in time; Pursuant to the private contract, Soar is entitled to, and the Company shall pay to Soar in priority, the value not retained by the Company; In the event of a Company Liquidity Event, Soar becomes the recipient of such value and may decide how to dispose of it at its sole discretion. Generally speaking, tokens issued using the DRP standard must establish a "value relationship" at the outset of issuance. This value relationship means the token must represent a specific value, such as the company's value, and cannot simply be launched as a governance token. Furthermore, this value relationship is contractually bound in advance. However, Soar also stated that this token will not be equity. The author speculates that Soar aims to launch a token that can represent the specific value of an entity but is not subject to traditional equity restrictions, so as to clearly solve the problem of "what exactly" the issued token is in the early stage. After the tokens are issued, the issuer must hold them for a period of time before they can start selling them. Before selling, they need to disclose the intention to sell and the specific quantity. Even after the disclosure is completed, they still need to wait for a period of time before they can officially sell them. The most difficult part of the DRP mechanism is the value that the token issuer (the so-called company) must pay to Soar when certain conditions are triggered. I believe this mechanism is similar to the "privatization and delisting" of listed companies in the stock market: if a listed company wishes to privatize and delist, it must repurchase publicly issued shares to reduce the public holdings below the exchange's regulations. In Soar's design, tokens not held by the "company" will be the company's responsibility in the event of liquidation. This significantly prevents manipulation. Soar explicitly stated that the design of DRP draws on some of the regulations of the traditional securities market, blocking the practice of arbitrarily issuing tokens and then selling them and then Rugging them at the root, so that tokens issued based on this standard must represent actual value and strictly comply with pre-sale disclosure guidelines. Without additional information from Soar, this is the best conclusion we can draw at this point. I've always believed that the key prerequisite for the next altcoin bull market is to address the question of "what exactly do altcoins represent?" Currently, many projects issue tokens whose value cannot be linked to their actual value, and no project clearly explains what their tokens represent. These issues are likely the biggest obstacles facing investors who favor cryptocurrencies but currently only choose Bitcoin. Although the Soar mechanism design standards are very strict, whether the designed standards are implemented through a "gentleman's agreement" or at the smart contract level; if the "company" is liquidated, how to ensure that the "company" will be responsible for the tokens circulating externally, we need to wait for the project to provide more information.

Author: PANews
Shocking Crypto Futures Liquidation: $103 Million Wiped Out in an Hour

Shocking Crypto Futures Liquidation: $103 Million Wiped Out in an Hour

BitcoinWorld Shocking Crypto Futures Liquidation: $103 Million Wiped Out in an Hour The cryptocurrency market often moves with breathtaking speed, and recent events have once again highlighted its inherent volatility. In a dramatic turn, major exchanges witnessed a staggering $103 million worth of futures liquidated in just one hour. This sudden wipeout is part of an even larger trend, with a total of $483 million in crypto futures liquidation occurring over the past 24 hours. Such significant figures send ripples through the trading community, prompting questions about market stability and the risks associated with leveraged positions. Understanding these events is crucial for anyone involved in digital asset trading. What Exactly is Crypto Futures Liquidation? To grasp the impact of these numbers, it is essential to understand what crypto futures liquidation entails. A futures contract is essentially an agreement to buy or sell a cryptocurrency at a predetermined price on a specific future date. Traders often use these contracts with leverage, meaning they can control a large position with a relatively small amount of capital. This amplifies both potential gains and losses. Liquidation occurs when a trader’s position is automatically closed by an exchange because they no longer have sufficient funds (known as margin) to cover potential losses. If the market moves significantly against a leveraged position, the exchange steps in to prevent further losses for the trader and the platform. This forced closure means the trader loses their initial margin, and often more, depending on the contract’s terms. Futures Contracts: Agreements to trade crypto at a future price. Leverage: Using borrowed funds to amplify trading power. Margin: Funds held by the exchange to cover potential losses. Liquidation: Automatic closure of a leveraged position when margin falls below a certain threshold. The Alarming Scale: Why So Much Crypto Futures Liquidation? The recent figures—$103 million in an hour and $483 million over 24 hours—are not just statistics; they represent substantial financial losses for many traders. This scale of crypto futures liquidation often points to sudden, sharp price movements in the underlying cryptocurrencies. When prices swing dramatically, especially for highly volatile assets like Bitcoin or Ethereum, many leveraged positions can quickly become unprofitable, triggering a cascade of liquidations. This phenomenon creates a feedback loop: liquidations can add selling pressure to the market, which in turn drives prices further down, leading to even more liquidations. It is a powerful reminder of the double-edged sword that leverage presents in the fast-paced crypto world. While it offers the potential for high returns, it also carries proportional risks, particularly during periods of heightened market uncertainty. What Drives These Massive Liquidation Events? Several factors contribute to the occurrence of significant crypto futures liquidation events: Market Volatility: Cryptocurrencies are known for their extreme price swings. Unexpected news, regulatory announcements, or large whale movements can cause rapid price changes. Excessive Leverage: Many traders use high leverage, sometimes 50x or even 100x. While appealing for potential gains, this means even a small price movement against their position can lead to liquidation. “Long” vs. “Short” Squeeze: A “long squeeze” happens when prices drop sharply, liquidating long positions (bets on price increases). Conversely, a “short squeeze” occurs when prices surge, liquidating short positions (bets on price decreases). The recent liquidations likely involved a mix, but a dominant direction often emerges. Lack of Risk Management: Traders who do not set stop-loss orders or manage their margin effectively are highly susceptible to liquidation during volatile periods. Navigating Volatile Waters: Strategies for Traders Given the frequent occurrence of large-scale crypto futures liquidation, how can traders better protect themselves? Effective risk management is paramount, especially when engaging in leveraged trading. Here are some actionable insights: Avoid Excessive Leverage: While tempting, using very high leverage dramatically increases your risk of liquidation. Consider lower leverage ratios that align with your risk tolerance. Implement Stop-Loss Orders: A stop-loss order automatically closes your position if the price reaches a certain level, limiting your potential losses and preventing a full liquidation. Manage Your Margin: Regularly monitor your margin levels. If your position is approaching liquidation, consider adding more collateral to avoid forced closure, or close the position manually. Understand Market Sentiment: Pay attention to broader market trends and news. Sudden shifts in sentiment can precede major price movements. Diversify Your Portfolio: While futures trading is specific, a diversified overall crypto portfolio can help mitigate risks if one asset or trading strategy goes south. Continuous Learning: Stay informed about market dynamics, new trading tools, and risk management techniques. The crypto space evolves rapidly. The recent crypto futures liquidation of over $100 million in an hour serves as a stark reminder of the inherent risks in highly leveraged cryptocurrency trading. While futures offer powerful tools for speculation and hedging, they demand a disciplined approach to risk management. Traders must prioritize understanding leverage, setting clear stop-loss limits, and avoiding overexposure to protect their capital. By doing so, they can navigate the unpredictable currents of the crypto market more effectively and avoid becoming another statistic in the next wave of liquidations. Always remember, capital preservation is as important as profit generation in this dynamic environment. Frequently Asked Questions (FAQs) 1. What is a crypto futures contract? A crypto futures contract is an agreement to buy or sell a specific cryptocurrency at a predetermined price on a future date. It allows traders to speculate on future price movements without owning the underlying asset. 2. How does leverage contribute to liquidations? Leverage allows traders to control a larger position with a smaller amount of capital. While it magnifies potential profits, it also magnifies losses. If the market moves against a highly leveraged position, the margin can quickly deplete, leading to automatic liquidation by the exchange. 3. Are all futures liquidations bad for the market? While large-scale liquidations can indicate significant market volatility and lead to cascading price drops, they are a built-in mechanism in futures trading to manage risk for both traders and exchanges. They can also “clear out” overleveraged positions, potentially setting the stage for more stable price action later. 4. What can traders do to avoid liquidation? Traders can avoid liquidation by using lower leverage, setting strict stop-loss orders to limit potential losses, actively managing their margin, and continuously monitoring market conditions. It’s also crucial to avoid emotional trading and stick to a well-defined risk management strategy. 5. What’s the difference between a “long” and “short” liquidation? A “long” liquidation occurs when a trader betting on a price increase (going long) has their position closed due to a price drop. A “short” liquidation happens when a trader betting on a price decrease (going short) has their position closed due to a price surge. Did this article shed light on the recent dramatic market movements? Share your thoughts and help fellow traders stay informed by sharing this article on your social media platforms! Knowledge is power in the volatile world of cryptocurrency. To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin price action. This post Shocking Crypto Futures Liquidation: $103 Million Wiped Out in an Hour first appeared on BitcoinWorld.

Author: Coinstats
‘Winner takes most’ era dawns for Ethereum treasuries as euphoria wanes

‘Winner takes most’ era dawns for Ethereum treasuries as euphoria wanes

Ethereum treasuries are in trouble. Market premiums for shares in companies that hold Ether as a reserve asset have evaporated from 5x during the summer to below 1x by September, marking what Coinbase analysts are calling the end of the “speculative phase” and the beginning of a brutal “player-versus-player” battle for survival. Translation: investors no longer these as growth plays on crypto euphoria. Instead, they’re just expensive wrappers for Ethereum itself. The premium collapse comes as 71 firms collectively hold over four million Ether worth about $22 billion, and that figure continues to grow. BitMine and SharpLink Gaming, the two largest treasuries, comprise more than 50% of the market. Yet investors value many of these companies below the value of their crypto holdings. Bitcoin treasuries are suffering the same scenario, where one in three of the 172 public firms holding Bitcoin are trading below their premiums.Dilution without delayUnlike Bitcoin treasuries, many of which use convertible debt with delayed or potentially no dilution, Ethereum treasuries just issue shares and hope for the best.That’s the problem, analysts say.“For the most part, they’re not employing any convertible debt strategies,” Luke Nolan, senior Ethereum research associate at CoinShares told DL News. “They are doing straight up at-the-money equity offerings, immediately diluting shareholders.” Dilution is something that investors in the Bitcoin space are also dealing with nowadays. Michael Saylor’s firm, Strategy, recently went back on a promise to not dilute shareholders, irking the Bitcoin faithful. The numbers are damning. Strategy dropped from a 1.8x premium in July to 1.29x today. Another Bitcoin treasury bulwark, Metaplanet, crashed from 7.14x premium in June to just 1.4x now. “It’s quite a stark decline,” Nolan noted. “I think this is likely to continue for those.”Things aren’t faring any better for Ethereum treasuries.Seven of the 17 Ethereum treasuries tracking their premiums now trade below net asset value, also known as mNAV, with SharpLink Gaming, led by Ethereum co-founder Joe Lubin, sitting just below 1. ETHZilla is trading at a 20% discount, while BTCS Inc. offers investors a more than 30% discount.The mNAV metric measures whether a treasury company’s stock price trades above or below the value of its crypto holdings. Above 1 means investors are paying a premium, below 1 means they’re getting a discount. Indeed, the pack leaders are making questionable moves. Bitmine, the largest Ethereum treasury, is “investing cash into alternative opportunities like OCTO — which detracts from being a pure play,” Nolan said.Volume collapseTheir dwindling trading volumes are only making the outlook worse. Digital asset treasury volumes peaked in mid-August, then plummeted 55% into September, according to Coinbase. Max Shannon, senior research associate at Bitwise asset management, points to multiple factors killing demand: declining interest in exchange-traded funds, rotation back into Bitcoin, and the emergence of Solana and Avalanche treasuries stealing mindshare. “Ethereum treasuries’ trading volumes, on aggregate, collapsed from their peak,” Shannon told DL News. “For the last two weeks they’ve sat below the point from when Bitmine kicked off the Ethereum treasury craze, in turn crushing mNAV.” Now, this could be a short-lived break as the market awaits a decision from the Federal Reserve regarding interest rates next week. ‘Winners take most’Moreover, Shannon expects brutal consolidation ahead.The distribution of Ethereum treasuries “skews heavily toward ‘sharks’ and ‘fish’” — mid-sized players holding anywhere from 101 to 100,000 Ether — with just a handful of whales commanding real scale.“The reality is likely a ‘winners take most’ situation,” Shannon said. “We expect consolidation over time, with a small number of dominant players commanding most flows — much like what we’ve seen in Bitcoin treasuries.”But at least Ethereum treasuries won’t blow up like their Bitcoin counterparts, according to Nolan. “Because they have little to no outstanding interest payments, there is no risk of liquidation,” Nolan said. Nolan also forecasted what needs to happen for momentum to pick back up for Ethereum treasuries: “Ethereum gathers steam again and gets closer to an all-time high.” Pedro Solimano is DL News’ Buenos Aires-based markets correspondent. Got at a tip? Email him at psolimano@dlnews.com.

Author: Coinstats
Bitcoin (BTC) Price Forecast: $180,000 Still in Sight, While This Token Leads List of Best Cryptos to Invest in for Under $1

Bitcoin (BTC) Price Forecast: $180,000 Still in Sight, While This Token Leads List of Best Cryptos to Invest in for Under $1

As Bitcoin (BTC) approaches its potential breakout with forecasts targeting $180,000, investor focus is shifting away from the dominant cryptocurrency towards emerging players driving the next wave of adoption. Among these, Mutuum Finance (MUTM) is in the limelight because of its innovative approach of decentralized lending. Price per MUTM remains at $0.035. Investors are going […]

Author: Cryptopolitan
Bitcoin Hash Rate Hits Record 1.12B TH/s as Network Difficulty Surges – Will BTC Break $117K?

Bitcoin Hash Rate Hits Record 1.12B TH/s as Network Difficulty Surges – Will BTC Break $117K?

Bitcoin’s hash rate, the network’s aggregate computational power, reached a milestone of 1.12 billion TH/s on September 12, according to Bitinfocharts data. The network difficulty, which measures the computational complexity required for miners to discover new blocks on the blockchain, is on track to reach a record peak of 136.04T Market analysts now suggest that Bitcoin is positioned to overcome its 3-week-long resistance level at $117K. Record Bitcoin Hash Rate and Fed Rate Cut Could Trigger $117K Breakout An increasing hash rate shows increased computational resources being allocated to Bitcoin mining.Source: Bitinfocharts data This typically reflects increased miner confidence, as they essentially bet that Bitcoin’s future valuation will warrant their hardware and energy costs, and it also rises proportionally with the hash rate According to CoinWarz, the upcoming difficulty adjustment is projected for September 18, 2025, with current estimates indicating a 6.38% increase to 136.04T.Source: CoinWarz With the Federal Reserve’s highly anticipated rate decision scheduled for September 17 and risk-on markets anticipating a 25-basis-point reduction, investor sentiment on a Bitcoin $117k breakout now leans optimistic. This perspective aligns with miner reserves climbing to a 50-day peak of 1.808 million BTC on September 9, according to CryptoQuant data, suggesting miners are maintaining their holdings rather than liquidating. Similarly, crypto analyst Avocado Onchain identifies a fundamental shift in mining behavior and Bitcoin network resilience. Examining the Miners’ Position Index (MPI), spikes have historically emerged under two conditions, which are pre-halving periods when miners tactically reduce holdings, and late bull market phases when they sell aggressively into fresh retail capital.Source: CryptoQuant The present cycle shows a contrasting pattern, although some pre-halving distribution is obvious, as the intense late-cycle liquidations remain notably absent. This shows that ETF inflows and Bitcoin’s adoption as a strategic treasury asset by major economies may be reshaping mining strategies. They seem to be transitioning from short-term liquidation toward long-term accumulation. The analyst further emphasizes that mining difficulty has achieved an all-time high, with its growth trajectory forming the characteristic “Banana Zone” of steep increases. Bitcoin Technical Analysis: Bulls Challenge $117k Resistance Wall Bitcoin analysts have identified $117,200 as the key resistance level for the price to overcome, which corresponds with a CME gap. Should BTC decisively reclaim this threshold, pathways toward new all-time highs above $124k would emerge. In the event of rejection, BTC could retreat to monthly lows with liquidity concentrations around the $108K-$112K range. The FOMC meeting approaches next week, with a 25-basis-point rate cut anticipated. Market direction will hinge on Powell’s commentary and the Fed’s perspective on inflation and employment metrics. If Powell emphasizes inflation concerns, BTC might decline to test the $112k liquidity zone.Liquidity Zone. (Source: Coinglass) From a technical perspective, the Bitcoin 4-hour chart displays price recovering within a trading range following several unsuccessful attempts to sustain levels above the $119,000 resistance area. The wedge formation that previously supported the upward trend has now deteriorated, with repeated false breakouts confirming selling pressure at elevated levels.Source: TradingView The price currently trades around $115,400, which is near the range’s upper limit, where resistance has historically prompted corrections. With support established around $107,700, the chart indicates a probable rejection at current levels, favoring a decline toward the range’s lower boundary unless buyers achieve a convincing breakout above $119,000

Author: CryptoNews
Top Cryptocurrencies to Invest in for 2025 Feature Rollblock Alongside BTC, ETH And ADA

Top Cryptocurrencies to Invest in for 2025 Feature Rollblock Alongside BTC, ETH And ADA

Rollblock joins BTC, ETH, and ADA as a 2025 top crypto pick, with $11.7M raised, 50,000 players onboarded, and 20x–40x upside potential from its live iGaming hub.

Author: Blockchainreporter
Dogecoin Price Prediction: DOGE Builds Momentum on ETF Hype, While Viral $0.035 DeFi Crypto Targets $1

Dogecoin Price Prediction: DOGE Builds Momentum on ETF Hype, While Viral $0.035 DeFi Crypto Targets $1

Dogecoin price action is back in the spotlight after ETF rumors spark fresh interest in the crypto ecosystem, but most chatter is being diverted towards Mutuum Finance (MUTM). Mutuum Finance is in Stage 6 of presale and has capped the token price at $0.035. Stage 7 raises the price by 14.29% to $0.04. The project […]

Author: Cryptopolitan
2 Tokens Under $0.50 Shining as the Best Cryptos to Buy in September 2025

2 Tokens Under $0.50 Shining as the Best Cryptos to Buy in September 2025

With the cryptocurrency market heating up in the month of September 2025 with renewed vigor, investors are keeping their eyes on undervalued altcoins poised to post enormous gains under the $0.50 mark. In the center of all that attention is Mutuum Finance (MUTM), a DeFi protocol quickly rising in the market with its revolutionary model […]

Author: Cryptopolitan
The Next Token to Blast Off: Undervalued Tokens Under $1 to Watch Out For Now

The Next Token to Blast Off: Undervalued Tokens Under $1 to Watch Out For Now

The post The Next Token to Blast Off: Undervalued Tokens Under $1 to Watch Out For Now appeared on BitcoinEthereumNews.com. With crypto markets positioning themselves for their next boom, investors are increasingly looking towards tokens trading under $1 for breakout potential. One of the latest entrants causing a buzz is Mutuum Finance (MUTM), a DeFi-project positioning itself at the intersection of lending, liquidity, and token utility scalability. Mutuum Finance is on its sixth presale round with tokens available for sale at $0.035. The project has raised over $15.6 million and over 16,220 individuals support it. Mutuum Finance (MUTM) is becoming a valuable coin for investors tracking undervalued assets in an uncertain market. Shiba Inu (SHIB) Holds Around $0.00001293 During Cautious Momentum Shiba Inu (SHIB) is priced at $0.00001293, with intraday highs and lows of $0.00001271 and $0.00001316, respectively. Charts signal that the token is yet to consolidate, moving between support around $0.0000121 and resistance at approximately $0.0000130. Experts note that a breach of this resistance will lead to $0.0000152, while a drop below support will challenge lower levels. In the meantime, investor sentiment is slowly turning toward new DeFi initiatives like Mutuum Finance, which are starting to set the tone for the wider altcoin market. Mutuum Finance Presale Momentum Sixth MUTM token sale round reaffirms the sustainability of the project with an all-time high of $15.6 million and logging over 16,220 investors. Investors in this round will enjoy humongous profits once the token goes live. Mutuum Finance is building an entire ecosystem which will feature a stablecoin, on the Ethereum chain for maximum security and stability. $50,000 Bug Bounty Program In order to ensure the safety of the platform, Mutuum Finance has initiated a Bug Bounty Program in association with CertiK with the reward value up to $50,000 USDT. The system provides an open invitation to white-hat hackers, security researchers, and developers who are interested in discovering and reporting bugs.…

Author: BitcoinEthereumNews
In the past 24 hours, the total contract liquidation of the entire network was US$287 million, mainly due to the long position

In the past 24 hours, the total contract liquidation of the entire network was US$287 million, mainly due to the long position

PANews reported on September 12th that Coinglass data showed that over the past 24 hours, the cryptocurrency market saw $287 million in liquidated contracts across the network, including $217 million in long positions and $70.2671 million in short positions. The total amount of BTC liquidations was $68.5803 million, and the total amount of ETH liquidations was $65.3042 million.

Author: PANews