Which Perp DEX Has the Fairest Liquidation System?

A liquidation engine protects a market by taking control away from a trader at the worst possible moment.

The question is whether that process is predictable, proportionate and auditable.

Most comparisons focus on the displayed liquidation price. That number does not reveal:

• Whether the trigger used the correct reference price
• How much of the position was unnecessarily closed
• What execution delay or slippage occurred
• How much equity remained after penalties and fees
• Whether an insurance fund or ADL mechanism transferred losses elsewhere
• Whether an independent observer can reconstruct the event

Decentralised News has created the DN Perp DEX Liquidation Fairness Index, a 100-point methodology covering trigger integrity, proportionality, value retention, stress execution, backstop fairness, transparency and recovery.

The article compares the disclosed mechanisms used by Hyperliquid, dYdX, GMX and Paradex. It does not award performance rankings before sufficient matched-event evidence exists.

Our central thesis:

The fairest liquidation engine is not necessarily the one with the lowest advertised penalty. It is the one that restores solvency while preserving the greatest amount of legitimate trader equity.

Read the research and use the interactive Liquidation Fairness Calculator: https://decentralised.news/perp-dex-liquidation-fairness-index-2027

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