Can a Death Spiral Be Compared to a Margin Call in Derivatives Trading?
Yes, there is a conceptual similarity. A death spiral is an unrecoverable negative feedback loop for the network's security and price.
A margin call in derivatives is a demand for a trader to deposit additional capital to bring their margin account back to the minimum required level. Both represent a critical point where an initial negative event (price drop) triggers a cascade of forced negative actions (miner shutdown or forced liquidation) that accelerates the initial problem.
