Many people陷入 a deadly misconception when playing the cycle loan—thinking that as long as the LTV hasn't broken through the 80% liquidation threshold, it's as safe as a rock. This linear thinking is basically dancing on the edge of self-destruction.

The reality is, during extreme market volatility, the liquidation line isn't a clear-cut red line at all; it's a mirage full of uncertainties. You see a 10% safety cushion in your account, but when liquidity suddenly dries up in those few minutes, that cushion can only last a second—if you're lucky.

Take the Dutch auction mechanism, for example. Theoretically, it's fairer than fixed-discount liquidations, but it has a fatal flaw: it assumes the market is always continuous and that there's always a liquidator willing to step in. What happens then? When BNB crashes 30% in a short period and on-chain Gas fees spike to thousands of Gwei, these assumptions collapse instantly. The system calls this a "liquidity vacuum gap."

By that point, the secondary market price of slisBNB can become severely depegged due to panic—possibly over 10%. Bots crunch the numbers: even with auction discounts, buying slisBNB results in a loss. Either the discount can't cover the depegging extent, or Gas costs are too high to execute. The auction fails to attract bids. The protocol is forced to keep lowering prices until it shatters the psychological barrier.

The key is, your asset shrinkage isn't caused by market price drops but by "liquidity absence" swallowing your position alive. By the time you receive a liquidation notice, your losses often far exceed the market decline. This is the horror of "non-linear liquidation"—facing systemic crises, no mathematical model can help. The only salvation is your ridiculously low position management.