Who profits from the liquidation of contract positions?

The trading fees are fully paid to the platform, but the platform will use a portion of the fees to pay market makers.

The funding rate for perpetual contracts goes entirely to the counterparty.

The main portion of the margin (principal), which is the loss incurred before liquidation, is earned by the counterparty.

The additional losses occurring at the time of liquidation go to the platform. If this happens during a spike, then this portion is indeed earned by the platform. However, if it is a one-sided market, this money is actually lost from the platform, and the platform could potentially lose even more, which again benefits the counterparty. However, almost all platforms now have an ADL mechanism, so the platform will forcibly close the counterparty's position to avoid excessive losses.

Exchanges do not actively step in as counterparties. Market makers are always the ones providing liquidity, not the platform's reserves. Therefore, when entering the market, one must consider carefully and set profit stop-loss levels in order to achieve a doubling of returns. #美国加征关税 #以太坊十周年 #以太坊十周年 $BTC $ETH