A hundred to one

A hundred to one means that a one percent move in the price against the client is enough for the exchange to automatically close his position and take his collateral. This is called liquidation. Bitcoin moves one percent in an hour on any ordinary day. Liquidations became the crypto industry’s main source of drama, memes and profit, and perpetual swaps with leverage were copied by every major exchange in the world. Today the turnover in such contracts is many times the turnover in the coins themselves. In 2020 American prosecutors charged the founders of BitMEX with serving Americans without verifying clients and without fighting money laundering. In 2022 all three pleaded guilty, paid $10 million each and got probation. On March 28, 2025, President Trump pardoned them.