Previously, @ tarunchitra's article may have been difficult for everyone to understand, but @ Haiteng_okx Teng EO explained very well why any contract requires insurance funds and ADLs In 2018, these two things were basically non-existent. Perhaps Lao Jiucai had an impression that it was common for losses to be spread out across warehouses. This is because contracts, whether executed or forced to liquidate, essentially require reverse orders of equal position size Simply put, if an order is forced to close, but the position is too large and there are not enough orders in the opposite direction, then the remaining position will become a net loss unless someone takes over, and the outcome at that time is to be spread out to everyone Later on, insurance funds or Hyperliquid's HLP essentially took over liquidation positions in the event of a shortfall, and in extreme cases, bore the loss of liquidation. ADL and early liquidation are risk control mechanisms designed to provide a safe buffer for insurance funds, allowing for profitable liquidation without incurring losses due to liquidation In 2018, contract products were far less sophisticated than they are now, and exchanges used manual risk control to execute them. This type of large position order, which is not cancelled even after a warning, is essentially taking advantage of the exchange This is just like how the quick pump and dump of short positions in spot free small currency contracts today (which actually causes losses for exchange funds) will also result in account suspension, regardless of the exchange - including HL's JellyJelly unplugging the network cable So don't blindly empathize. At most, this is a limitation of the times, not an issue with OKX