The biggest fear when trading perpetual contracts is being liquidated unexpectedly, and the main culprit behind this is often the mark price.

Liquidation triggers rely on the mark price, not the real-time transaction price you see. How is this mark price determined? It is calculated using a weighted index method, designed to prevent market manipulators from smashing the order book to artificially cause liquidations. It sounds safe, but in practice, issues can still arise.

The key safeguards are: enable the "Mark Price Alert" feature, so that if the difference between the mark price and the current contract price exceeds 0.5%, an alert is immediately triggered. This price gap may seem small, but under leverage, it can directly determine whether you profit or lose.

Also, avoid a common pitfall—don't trade small-cap perpetual contracts during periods of very low liquidity. For example, trading a niche coin's contract at 3 a.m., if the mark price deviates too far from the spot price, it can be unpredictable. Always confirm that the mark price and the spot price are synchronized before opening a position; this is the last line of defense.

Mainstream coins like ETH, SOL, and XRP have good liquidity and relatively stable mark prices. Beginners can start practicing with these.