As a leading project on the #perp Dex track, the core developer X of #GMX also responded to some questions regarding the GMX mechanism based on the events of #Hyperliquid from a few days ago, while calling on everyone to understand and support developers in solving problems. I have summarized it briefly:

GMX's Risk Management:

1. GMX dynamically adjusts the maximum leverage ratio through risk parameters (reducing as the total open contracts increase) to prevent high leverage operations from exploiting price impacts.

2. For reducing positions, when withdrawing collateral that exceeds the leverage limit, only the position size is reduced without decreasing the collateral, ensuring sufficient collateral is available for liquidation.

3. This mechanism effectively prevents similar issues but may affect user experience (e.g., variable leverage), which can be mitigated by gradually adjusting risk parameters.