How Do Exchanges Mitigate the Risk of Extreme Price Movements during Off-Hours? ▴ Learn

How Do Exchanges Mitigate the Risk of Extreme Price Movements during Off-Hours?

Crypto exchanges, which operate 24/7, use various mechanisms to manage risk. These include dynamic margin requirements that adjust with volatility, circuit breakers to temporarily halt trading during extreme volatility, and automatic liquidation systems to close out under-collateralized positions before they cause systemic risk.

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How Do Exchanges Implement Circuit Breakers to Mitigate Flash Crashes?

Why Is Off-Chain Governance Risk Often Categorized as “Basis Risk” for Derivatives?

How Do Exchanges Mitigate the Risk of a Double-Spend Attack?