This article will review the loss mitigation mechanisms commonly found on exchanges that offer trading with leverage. More specifically, we will examine the roles of insurance funds and auto-deleveraging as counter-measures to capital drawdowns on trading platforms. Basic familiarity with perpetual swaps and leveraged trading is recommended before proceeding.


We are happy to announce that dTrade has closed a seed investment round co-led by Three Arrows Capital and DeFiance Capital, with Polychain Capital, ParaFi Capital, Huobi, Mechanism Capital, Magic Ventures, Bixin Ventures, IOSG Ventures, Hypersphere Ventures, DeFi Alliance, LongHash Ventures and Fenbushi Capital participating.

Completing the funding round is…

Definition: A perpetual futures contract, also known as a perpetual swap, is an agreement that allows counter-parties to non-optionally buy or sell an asset at any point in the future. Perpetual swaps allow for buying or selling the value of some “underlying” asset with several key advantages:

  1. Trading with leverage…

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