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Does the Magnitude of a Trader’s Profit Affect Their Share of Socialized Losses?

Yes, the magnitude of a trader's profit directly affects their share of socialized losses. The loss is typically distributed proportionally to the trader's realized profit at the time of the deficit.

A trader with a larger realized profit will absorb a proportionally larger share of the socialized loss compared to a trader with a smaller profit.

What Is the Role of ‘Socialized Losses’ as an Alternative to an Insurance Fund?
Why Are Socialized Losses Considered More Detrimental to Market Sentiment than ADL?
How Does an Exchange’s Risk Engine Determine the Appropriate Size for an ADL Event?
Can a Trader Lose More than Their Profit from Socialized Loss?