$ETH, $FHE, $ZEC prices move together, but how many people are just losing their wings in contracts.

Losing your account to a contract is no surprise; the real issue isn't your market outlook, but that you don't take the contract rules seriously at all.

A few days ago, a friend complained to me that he held a position for several days, the trend didn't go wrong at all, but his funds were repeatedly deducted, and he lost over $1000 just on that, finally being liquidated. The heartbreaking part—just after being washed out, the market started a main rally.

This is a typical case of only betting on rise or fall without understanding the game rules. In the contract market, this kind of loss is only a matter of time.

**Funding Fee — The Most Hidden Cutting Tool**

Many people don't realize that holding a contract isn't free. Funding fees are settled every 8 hours; when the rate is positive, longs pay; when negative, shorts pay. Those holding full positions and stubbornly resisting liquidation are the most pitiful, thinking they are safe as long as they don't hit the liquidation line, but in reality, their accounts are being drained little by little by funding fees.

How to avoid?
- Don't hold positions during high funding rate periods; close positions in time
- Don't cross multiple settlement periods with one order
- When the market is clear, try to stand on the side that can earn funding fees

**Liquidation Line — Much Closer Than You Think**

You are watching the theoretical liquidation price, but the exchange calculates the liquidation line plus fees. So, "just a small pullback," and your order suddenly disappears. This trap is the easiest to overlook.

The defensive strategy is simple but requires ruthless execution: never bet full position, prioritize using isolated margin mode, and keep leverage around 3-5x. Leave enough margin buffer to withstand normal market fluctuations.

**High Leverage — The Meat Grinder Wearing the Cloak of Profit**

The higher the leverage, the more severe the consumption of fees and funding costs. Many people guessed the right direction but still didn't make money, not because of poor skills, but because trading costs drained them alive.

Ultimately, contracts are not just about guessing the correct rise or fall. They test whether you understand the rules thoroughly and can calculate precisely. Guess the right direction but don't grasp the rules? That's luck, and it will backfire sooner or later. Avoid these three pitfalls, learn to plan carefully, and only then can you truly survive in the market. Making money is always secondary; surviving is the first priority.