How Can a Trader Manually Reduce the Risk of Their Position Hitting the Bankruptcy Price?

A trader can manually reduce the risk of hitting the bankruptcy price by actively managing their position. The most effective ways are to reduce the leverage of the position or to add more collateral (margin) to the account.

Adding margin lowers the liquidation price, increasing the buffer between the liquidation price and the bankruptcy price. Reducing leverage achieves the same goal by lowering the required maintenance margin.