A few suggestions regarding risk control on perps:

On the day Paradex experienced a malfunction, most people lost money on gold.
And I did not trade gold. The profits from trading gold are actually quite high.
So why didn't I trade gold?
It's not just Paradex I didn't trade on. I didn't trade gold on any perp. (Basically, I only trade BTC, ETH, SOL, occasionally BNB, XRP, and Hype)
Today, I'll briefly explain this to everyone, so that some old-timers won't be confused about the reasons.
There are mainly two reasons. People trading gold do so because of low volatility, so they are willing to use high leverage. This leads to many users making this choice. So once extreme situations occur, it causes a chain liquidation. What is a chain liquidation?
It's when one user gets liquidated, affecting the price, which causes other users to get liquidated as well. Ultimately, this results in a "pin" effect.
If the depth of gold was sufficient, pinning wouldn't be easy to happen.
In fact, the speed of gold is not enough; trading volume and depth are two different things. Don't think that high trading volume means safety.
(If you're just quickly opening and closing positions, that's fine, but this behavior is risky—like a "witch hunt.")
Currently, the market is very volatile, and a crash can happen at any time.
You should monitor volatility 24/7. My open-source scripts have this feature. For example, you can monitor if the 5-minute price fluctuation of BTC, ETH, SOL exceeds 2-3%. If it does, set an alert.
If you use the script, be sure to limit position opening during extreme market conditions. The profits during extreme conditions should be avoided as much as possible. You can operate manually, but do not rely on automated scripts. Because scripts are just scripts and cannot predict unexpected events.