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Why Does Bitcoin Have a 10-Minute Block Time? The Real Reason Behind the Design

Why Does Bitcoin Have a 10-Minute Block Time? The Real Reason Behind the Design

Volatility Patterns in Bull and Bear Markets Explained

Volatility Patterns in Bull and Bear Markets Explained

GLMS Glimpse IDO Launch Airdrop: How to Participate and What You Need to Know

GLMS Glimpse IDO Launch Airdrop: How to Participate and What You Need to Know

EU Stablecoin Restrictions Explained: What USDT and Other Tokens Can No Longer Do in Europe

EU Stablecoin Restrictions Explained: What USDT and Other Tokens Can No Longer Do in Europe

Howlcity NFTs Airdrop: What We Know About HWL Token Distribution in 2026

Howlcity NFTs Airdrop: What We Know About HWL Token Distribution in 2026

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Tag: DeFi liquidation

How Liquidation Engine Mechanics Work in Crypto and DeFi
  • By Eva van den Bergh
  • /
  • 28 Dec 2025

How Liquidation Engine Mechanics Work in Crypto and DeFi

Liquidation engines automatically close leveraged crypto positions when collateral drops too low. Understand how they work on centralized exchanges and DeFi protocols to avoid unexpected losses.

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