3. Spot determines contract price

The contract price depends on the spot price, which is only related to the supply and demand of its own market. This has already been mentioned in the top article, as the spot depth of ACT is already very poor, 1 million ACT is sufficient: ① Smashing down spot prices → ② Driving down index prices and marker prices → ③ Triggering a series of contract liquidations This process is also accompanied by the closing of "abnormal positions" in the contract. Perhaps it was the tightening of risk control that forced the existing spot chips and contract OIs to close their positions yesterday, which was the process of "squeezing the foam" in advance. Yesterday, Binance also lost 2M on ACT's insurance fund. As for the "contract arbitrage robot", in practice, this arbitrage robot has a very small impact on spot prices and does not play a decisive role: ① At 18:32 million to tens of millions of market level take sell orders for ACT contracts, whose strategy dares to take (can withstand) such massive take sell orders for altcoins? Do they have enough ACT chips to offset the risk in the spot market? BTC, ETH, SOL, and other coin pairs, the robot arbitrage strategy dares to take large positions, but takes millions of ACT 🤔 （？） ② Binance has already adjusted the maximum position of a single user to 3.5M. If this robot arbitrage strategy does not have risk control rules designed, the position limit will be triggered halfway through the strategy. 【 4. Common Handling Methods 】 This type of attack was also common in the previous bear market, and at the trading level, it usually involves monitoring abnormal trading behavior in both spot contracts ① The single transaction of a large holder of spot currency is less than N% of the depth of the opponent's order, and the excess quantity cannot be traded (IOC order) to prevent the buyer from smashing the order too quickly and causing the contract to collapse ② According to the spot depth and contract transaction volume, the refined management of contract risk limit - "squeeze foam" Now I roughly understand why @ heyibintance said 'hey', even though Binance Insurance Fund lost 2 million, it still bears the blame for manipulating the market 😂， It's time to compete for trading risk control strength again when the market is not good~ But it seems to have better trading risk control capabilities than Hyperliquid