How to design credit limits for exchanges - a more controllable on-site credit model Actually, I have considered granting VIP quotas through the exchange, and I have also discussed this matter with Tony (my Singaporean partner). My idea is not because of VIP, but because all transactions made by users on the exchange are actually recorded, including the payment of transaction fees. It is possible for the exchange to launch a "credit limit" based on transaction fees. For example, if I paid a total of $10000 in transaction fees on a certain exchange, I can actually give users an on-site credit limit based on 20% or 30% of the transaction fees. This limit cannot be withdrawn, but can be used for opening orders, contracts, spot trading, futures trading, and even wealth management. Because this money has actually been paid by the user, the exchange is giving up a portion of its profits, but for the user, it is equivalent to a credit card limit. Of course, if the credit limit is exhausted and there is no way to repay it, then there is indeed no other way, and the exchange will lose money. However, if the user returns and continues to place orders on Binance, they need to make up for this credit limit. If they do not make up for it, they cannot continue trading. Of course, it can be said that this user goes to other exchanges, but I believe that if a top trading company has similar services, then there is a high probability that multiple exchanges will consider it, which is a very practical "credit". It has nothing to do with how much money is in your account, as it is the money that the user has already spent. So what are the benefits of doing this? Let me give you an inappropriate example. Casinos have always said that they are not afraid of users winning, they are afraid of users not coming. What kind of users clearly want to win, but not just the casino? Of course, those who have lost everything. So if it's a casino, there will definitely be lenders. Don't laugh, it may seem cruel, but that's part of the system. So cryptocurrency is not gambling, but in reality, what can make people bankrupt are often high leverage and contracts, which means that users will only leave the table when they run out of money. For exchanges, the departure of users is not a good business, so good exchanges will not take the initiative to cut leeks, and it is better to earn transaction fees. So if such a 'credit mechanism' can be used, even zeroed investors have a chance to 'do it again', and this opportunity is not for the exchange to advance funds, but to use a small portion of the funds that the user has previously paid as the user's startup capital. Of course, this credit mechanism can also have some restrictions, such as not being able to use more than three times the leverage, etc. These are effective mechanisms to prevent users from getting involved. For users, this type of credit must be repaid once used, just like a credit card, but it can be withdrawn in advance, and withdrawal may require certain conditions. This is all about detailed design. Overall, what I can think of is an executable 'credit' limit. However, it should not be called credit, it is more like a fee refund, but it can be made into a credit model.