According to @QCompounding, a stock’s maximum loss on a long position is 100% while upside is theoretically unlimited, highlighting a structurally asymmetric payoff for traders (source: @QCompounding citing Napkin Finance). @QCompounding adds that this asymmetry is why they have never shorted a stock, underscoring the unbounded loss potential of short exposure when prices rise (source: @QCompounding; Napkin Finance). The same payoff logic applies to crypto spot assets such as BTC and ETH: long positions can fall to zero but have open-ended upside, whereas shorts carry theoretically unlimited loss if prices move higher (source: Napkin Finance; @QCompounding). Trading takeaway: this favors long-biased setups and requires strict risk controls if initiating any short exposure to manage the unbounded loss profile (source: Napkin Finance; @QCompounding).