Also a leading project on the #perp Dex track, X, the core developer of #GMX, also responded to some questions about the GMX mechanism based on the #Hyperliquid incident a few days ago. At the same time, he called on everyone to understand and support developers to solve the problem. I briefly summarized it.
GMX's risk management:
1. GMX dynamically adjusts the maximum leverage ratio (decreases as the total open position contract increases) through risk parameters to prevent high leverage operations from taking advantage of price shocks.
2. For positions reduction, if the leverage limit is exceeded when withdrawing collateral, only the position size is reduced without collateral to ensure that the liquidation is supported by sufficient collateral.
3. This mechanism effectively prevents similar problems, but may affect the user experience (such as unfixed leverage), which can be alleviated by gradually adjusting the risk parameters.