Many people ask why they should insist on buying spot assets and stay away from contracts. To put it simply, one very important reason is the issue of "liquidation."

What happens during intense market volatility? Your contract position may not be liquidated in time. As prices suddenly plummet or surge, your margin can't cover the losses. This is when a liquidation occurs—your principal is gone, and your account still owes money to the platform.

Now, the problem becomes more complicated. Are the spot assets in your account still alive? In fact, your spot holdings could be directly frozen and used to offset the debt you owe to the platform. In other words, liquidation isn't the only risk point. In extreme market conditions, the speed of market changes can completely outpace the response of the liquidation mechanism, ultimately leading to account liquidation and forced asset disposal.

This is why many people prefer to hold spot assets rather than engage in leveraged contracts. The risk-to-reward ratio simply doesn't justify it.