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Portfolio margin needs a robust on‑chain lending backbone
  • Traditional centralized exchanges extend credit arbitrarily, creating hidden bad‑debt risk.
  • In black‑swan events, that credit can evaporate, threatening solvency.
  • Hyperlquid solves this by requiring every margin position to be fully collateralised by on‑chain lenders.
  • This design aligns incentives and makes risk visible to the whole ecosystem.
Jeff YanWhen Shift Happens01:17:20

Supporting quotes

Portfolio margin needs a robust borrow‑lend backdrop. Jeff Yan
Centralized exchanges can mint balances, leading to bad debt in black swan events. Jeff Yan

From this concept

Portfolio Margin & Risk Management

Hyperlquid introduces on‑chain portfolio margin backed by a robust lending market, avoiding the hidden credit risk of centralized exchanges while preserving capital efficiency for traders.

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