Having a feeling that your borrowing position is only "three steps" away from liquidation is really frustrating, even though you haven't lost much, your mindset first collapses by half.


I usually stop and don't add to the drama: first, write down the health/liquidation price in my notes, and casually calculate a threshold like "if it drops X%, I have to act";
second, immediately reduce leverage, not going all-in to cover margin, better to pay down some first and push the red line further away;
third, turn on automated alerts, don't rely on watching the market yourself.
Honestly, the closer you are to the red line, the easier it is to be driven by emotions, so you need to stick to discipline more.

Recently, I've been discussing testnet incentives, points expectations, and the group is guessing every day whether the mainnet will issue tokens...
I also get tempted, but at such times, I prefer not to max out my borrowing position, in case there's a sudden wave of volatility on-chain, liquidation is more real than "issuing tokens."
Last night, I kept refreshing and retrying on my wallet several times, which made me even more clear-headed: don't stack uncertainties on top of uncertainties, focus on keeping the position alive first.
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