#TermMax @TermMax I wasn't asking myself whether a margin position with leverage on TermMax can be done without liquidation. The threshold for forced closure felt to me like a mandatory part of such a setup—without it, the whole thing would simply make no sense.
In TermMax Alpha, the leverage is arranged completely differently from what I'm used to seeing. Long and Short here mean buying a call or put option.
Max Cost here includes both a premium for the position and the maximum possible loss.
This mechanism doesn't involve liquidation risk. But Max Cost can still be lost entirely—just without the event of forced closure.
My criteria changed.
Instead of a liquidation threshold, I'm now looking at a predefined position limit. It's similar to the difference between constantly anticipating the moment you have to get out of the game and knowing the price of your entry ticket in advance.
But knowing that price ahead of time is still not the same as being internally ready to pay it.
In TermMax Alpha, the leverage is arranged completely differently from what I'm used to seeing. Long and Short here mean buying a call or put option.
Max Cost here includes both a premium for the position and the maximum possible loss.
This mechanism doesn't involve liquidation risk. But Max Cost can still be lost entirely—just without the event of forced closure.
My criteria changed.
Instead of a liquidation threshold, I'm now looking at a predefined position limit. It's similar to the difference between constantly anticipating the moment you have to get out of the game and knowing the price of your entry ticket in advance.
But knowing that price ahead of time is still not the same as being internally ready to pay it.
