Is high leverage really safe? When you focus on the 110% minimum collateral ratio data on a leading exchange and imagine BNB rising to $1000 to turn things around, the market's liquidation bots are already sharpening their blades.

It seems that the most lenient parameters are often the most deadly. 110% MCR sounds friendly—it means you can borrow up to 90% of the collateral's value. But this is precisely the biggest lure.

Let's do some simple math: BNB drops from $600 to $540, a decline of only 10%. But your 90% LTV will instantly become 100%. No buffer, triggering liquidation immediately. Two such fluctuations in a row? Your safety cushion is as fragile as paper.

The key lies in the liquidation mechanism. Some leading platforms use a Dutch auction model, which may fail during extreme liquidity crises. Imagine who dares to step in during a sharp drop? The system, to repay debts, has to drastically lower prices. This is not price prediction but a risk inherent in the mechanism design itself.

To sum up: high collateral ratios do not equal high safety. The higher the leverage, the lower the tolerance for market volatility. Under any extreme assumptions, risks are amplified infinitely. If you're using high leverage, always keep an eye on the liquidation price.