According to @LexSokolin, crypto is rediscovering counterparty risk and liquidation cascades, flagged in a Nov 11, 2025 post linking to a ChainRisk note on X, drawing trader focus to leverage-driven spillovers across venues. source: @LexSokolin Traders should review exchange and prime-broker counterparty exposure, margin schedules, collateral haircuts, and rehypothecation policies before deploying leverage to reduce forced-liquidation vulnerability. source: CFA Institute BIS research shows that procyclical margining and high leverage can accelerate fire-sale dynamics, supporting the case for lowering leverage and sizing positions relative to maintenance margin to curb cascade risk. source: Bank for International Settlements Regulatory guidance emphasizes segregated client asset protections and diversification across counterparties to mitigate single-point-of-failure risk when counterparty stress rises. source: International Organization of Securities Commissions Monitoring open interest, funding rates, and on-chain liquidation thresholds can help identify leverage build-ups and stress early across centralized and DeFi venues. source: Coin Metrics