Auto Deleveraging

Perpetual futures are drawing renewed scrutiny as they move into regulated markets, with critics warning that retail-driven leverage could amplify systemic risk. FXCOINZ examines why the decisive issue is not the contract structure itself, but how venues manage leverage, margin, pricing, liquidations, and defaults under stress.

DRW CEO Don Wilson argues that perpetual futures are not defined by high leverage, auto-deleveraging or crypto exchange design choices. His comments arrive as regulated markets explore whether perps can expand beyond crypto into areas such as precious metals.