When the lending position is just three steps away from the liquidation line, I usually stop gambling on my luck.

The first step is to pull back the tentacles: reduce leverage / lower the position size, don’t let the protocol’s parameters confuse you;
The second step is to set up good alerts, on-chain alerts are really fast when triggered;
The third step is to think clearly if you can sleep through the worst-case scenario… if not, cut the position down to a level where you can sleep.
Lately, the NFT royalty disputes have been quite intense, and it’s similar—everyone wants to have it both ways: creators want income, the market wants liquidity, but the more tentacles there are, the harder it is to control.
Anyway, I’d rather earn a little less than wake up in the middle of the night to a liquidation text message.
That’s all for now.