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Is It in the Exchange’s Best Interest to Liquidate Traders?

No, it is not in the exchange's best long-term interest to liquidate traders, despite earning fees from it. Frequent mass liquidations can damage the exchange's reputation, lead to loss of trader confidence, and ultimately reduce trading volume.

The exchange's primary interest is in a stable, high-volume market, which is best achieved by robust risk management, not mass liquidations.

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