🛤️Avoiding Liquidations

Collateral

The risk of liquidation can, in part, be reduced by supplying more collateral and borrowing fewer tokens. This increases the margin you have against liquidation and gives more protection from market forces.

Review your open positions

It is also advisable to regularly keep an eye on your positions. Market downturns can happen quickly and cause liquidations with little warning. Regularly reviewing your open positions can help you manage your risk tolerance and stick to it.

Find your risk tolerance, don't trade emotionally

Crypto loans should only be used by people who fully understand them. Users should feel comfortable and have a pre-defined risk tolerance. Trading emotionally (FOMO, FUD) often leads to losing significant amounts of money.

Above all, never risk what you cannot afford to lose

Countless successful traders often advise risk management and diversification. Do not risk what you cannot afford to lose. Nothing is guaranteed.

The Dashboard

Before using CoachAI Bank it is recommended that you read our guide on crypto loans and risk management.​