2026-01-05 18:21:43

Recently received several messages all discussing a phenomenon: you get the market right, but still end up losing money. Someone said they held a position for four days, and the funding fees ate away $1,000, leading to liquidation. Yet, the market rebounded on the same day.

The problem is very painful—it's not that you predicted the wrong direction, but that you simply didn't understand the game rules.

There are three hidden reefs in contract trading, and most people capsize here.

**First Hidden Reef: Funding Fees Stealthily Siphon Off Your Money**

You only focus on the candlestick chart's ups and downs, but forget that funding fees are settled every 8 hours. During a bull market, the rate is positive, and longs pay shorts; during a bear market, it's the opposite.

What’s the most heartbreaking situation? Fully long, correct direction, but over two days, funding fees drain several hundred dollars, and finally, you get liquidated—only for the market to soar the next day.

How to avoid the trap?

Don’t hold on during high-fee periods (be cautious if fees exceed 0.1% over two consecutive rounds). Keep your position duration ideally under 8 hours. If you’re confident in a direction, be the side paying the funding fee against the trend.

**Second Hidden Reef: The Liquidation Line Is Not What You Calculate**

Many people naturally assume: 10x leverage means liquidation at a 10% drop. Reality? The platform’s liquidation process kicks in at a 5% drop.

The reason is simple—liquidation also incurs fees, so the actual liquidation threshold is closer.

Defense strategy: Use isolated margin mode instead of cross margin. Keep leverage between 3x and 5x for safety. Leave enough margin in your account to automatically extend the distance to liquidation.

**Third Hidden Reef: High Leverage Seems Exciting, But Costs Are Huge**

100x leverage sounds like big profits, but fees and funding costs are calculated based on the borrowed amount. You might earn a few hundred dollars, but when settled, these costs could wipe out your profit or even cause a loss.

The core logic is simple—use high leverage for short-term trades, low leverage for holding positions. The higher the leverage, the greater the risk. Impulsiveness is the devil.

Exchanges fear not that you lose money, but that you see through their rules. To survive in this market, instead of betting on market direction, it’s better to first master the rules and play them thoroughly.

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ContractSurrender

· 01-08 18:18

Looking in the right direction actually results in more losses, this is ridiculous... Funding fees are truly invisible knives, cutting you every day. --- Wait, the liquidation line is even closer than I calculated? Did my previous account also get eaten like this... --- High leverage is just the exchange's ATM, earning hundreds in fees and losing half, a blood and tears lesson. --- So in the end, it's really the rules that are tightly designed; we retail traders are just lambs being sheared. --- Funding fees are settled every 8 hours, who can withstand that? No wonder positions start bleeding after more than a day. --- 3 to 5 times leverage is the safe zone. I previously thought 100x leverage made me a pro, lol. --- Getting the direction right but still getting liquidated, this mindset really collapses me. No wonder that guy rebounded the same day but still lost. --- Counter-trend funding fee trick is indeed brilliant, but you need enough capital and the right mindset. --- Contract trading is really just playing the exchange's game, not about making money.

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RiddleMaster

· 01-06 08:15

Funding fees are really an invisible harvesting tool. If you pick the wrong side, you'll be drained... Luckily, I now mainly do short-term quick in and out trading, or I would have been completely eaten up and left with nothing.

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GateUser-0717ab66

· 01-06 05:50

Watching the market go in the right direction or not, it's really unbelievable. The game rules are so shady. The funding fee part is indeed a trap, it siphons off funds every 8 hours, making it impossible to defend against. The liquidation line is much closer than you think; this move by the exchange is absolutely ruthless. 100x leverage is pure suicide; the fees eat up all profits, it's simply not worth it. Holding with low leverage is truly the secret to survival. I now only dare to use about 3x. Instead of betting on rise or fall, it's better to understand the rules first. This sentence really woke me up. Holding a position for over 8 hours starts to bleed, who can withstand that? Isolated margin mode is much safer than full margin; at least it leaves a way out for yourself. Contracts are just the exchange's printing press; retail traders are all just cash machines.

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PumpDoctrine

· 01-05 18:51

Getting the direction right still results in losses. I've experienced this myself a long time ago. Funding fees are just a vampire machine for exchanges, impossible to defend against. --- Funding fee of 0.1% for two consecutive rounds? Just blow up, don't wait. --- The liquidation line is always closer than you think. Exchanges don't keep programmers around for nothing. --- 100x leverage? Dream on. The fees eat up profits as easily as eating a meal. --- It's really about playing the rules. Whoever masters the fee structure will survive longer; the direction is secondary. --- Holding a position for more than 8 hours will start to crash your account. That's no secret anymore. --- Rules always have a greater impact on life or death than market trends. Unfortunately, 90% of people are still betting on price movements. --- 3 to 5x isolated margin is enough. The full-position high leverage approach should have been thrown into the trash long ago.

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TokenRationEater

· 01-05 18:50

Getting wiped out by 1000U on the right direction, this is truly incredible. Funding fees are the real hidden danger. --- Settling every 8 hours? I didn't expect that at all, no wonder positions are just bleeding. --- Misjudging the liquidation line by almost means you need to learn a lesson. Acting at 5% is really ruthless. --- 100x leverage sounds great, but when the settlement fee turns into a negative number, this trade becomes impossible. --- Rules are the biggest market maker, much more important than just looking at the trend. --- Holding a full position and sticking to the right direction still results in liquidation. My friend did it this way, and he's still regretting it. --- Funding fees are deducted every 8 hours. Holding a position for more than a day is basically a suicidal trade. --- Using 3 to 5x isolated margin is indeed the basic skill to survive. Greedy people tend to die the fastest in the market. --- Seeing through the rules is a hundred times harder than seeing through the trend, but those who survive do it this way. --- Continuously enduring fees over 0.1% is just too stubborn.

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TokenDustCollector

· 01-05 18:48

Watching the market direction and still losing money, this is truly incredible. The funding fee is indeed an invisible killer. --- I knew it, I've seen too many cases of being wiped out after being fully long due to fees. Almost made a profit but ended up with nothing. --- The liquidation line is always closer than you think. Once you've stepped into this trap, you'll understand. --- 100x leverage? Wake up. The fees can wipe out all your gains. If you lack self-control, it's better not to touch it. --- The core is to play by the rules, not to gamble on the market trend. Most people have it backwards. --- Funding fees are deducted every 8 hours. Holding a position for over 8 hours means you're working for the exchange. --- Isolated margin mode has really saved me many times. Full position trading is a suicidal approach. --- Leverage of 3 to 5 times is the right way to go. Those who chase high leverage are just being harvested.

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metaverse_hermit

· 01-05 18:44

It's clear now, funding fees are the real harvesters, while the K-line fluctuations are just a cover. --- I've seen too many cases of losing 1000U in four days, either because the market was wrong or because I was drained by the bloodsuckers. --- Honestly, high leverage is a trap set by exchanges for retail traders; you earn a few hundred bucks and it all gets wiped out during settlement. --- Isolated margin mode can really save your life; after switching to it, my mindset became much calmer. --- I directly pass on funding fees above 0.1%, life is more important than profits. --- It's that simple: if you want to survive, don't go against the exchange; learn to operate against the funding fee in reverse. --- 100x leverage? I see it as a 100x liquidation rate; this thing is truly a devil. --- The liquidation line is always closer than you think; this must be remembered. --- Holding steadily at three to five times leverage is the right way; everything else is gambler's mentality.

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LayerZeroHero

· 01-05 18:33

Damn, this is exactly like my situation two weeks ago. The direction was correct, but I was still drained by funds until liquidation. That feeling was truly intense.

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MEVHunterNoLoss

· 01-05 18:32

Funding fees are truly an invisible money-grabbing machine; if you hold a position for more than eight hours, just expect to be drained. Even if you pick the right direction, you can still lose money—that's the most devilish part of contract trading. The liquidation line is always closer than you think; leverage is something you really shouldn't be greedy about. High leverage short-term trading is okay, but long-term holding is just giving money to the exchange. Rules are hard to understand; no matter how much you earn, you're just working for the platform. Funding fees are the real hidden cost, more painful than losing money. I used to be trapped by funding fees too, but now I stick to low leverage and isolated margin—survival is victory. That's why it's better to understand the game rules first rather than just watching the market.

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All-InQueen

· 01-05 18:24

Even when you get it right, you still lose money. This is the most despairing thing. I've already fallen for the funding fee part. The 8-hour settlement is truly a silent dagger. The liquidation line is painfully far from your desired position. The platform's little tricks are too sneaky. High leverage is like a vampire for the exchange; fees can eat up all your profits. If you can't master the rules, you'll inevitably lose everything.

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