How Do Unregulated Offshore Crypto Exchanges Offer Much Higher Leverage?

Unregulated offshore exchanges are not subject to the strict minimum margin requirements set by US regulators like the CFTC. They can set their own, much lower, initial margin requirements, which translates directly to offering higher leverage (e.g.

100x or more). This attracts high-risk traders but exposes them to much greater liquidation risk, as a small price movement can wipe out their entire margin deposit.

What Is the Maximum Leverage Typically Offered in Crypto Perpetual Swaps?
How Do the Contract Specifications (E.g. Contract Size) of CME Futures Differ from Unregulated Crypto Exchanges?
How Does the Unregulated Nature of Some Crypto Exchanges Amplify the Risks of Iceberg Order Detection?
How Do KYC and AML Requirements Differ across Regulated and Unregulated Crypto Exchanges?
What Is the Relationship between ‘Initial Margin’ and ‘Maintenance Margin’?
What Is the Maximum Leverage Typically Offered on a Crypto Perpetual Swap?
What Is the Difference between Initial Margin and Maintenance Margin in Futures Trading?
What Is the CFTC’s Primary Concern regarding High Leverage in Crypto Derivatives?

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