A few days ago, I met an older brother who looked exhausted: "I got the direction right, held on for four days stubbornly, but in the end, the funding rate ate up all my profits and I even lost 1,000 USD. Then I got liquidated, and right after, the market turned and hit the daily limit up." I could only tell him: Bro, you're not losing to the market, you're losing to the rules themselves.

Many people think contract trading is simple—just pick the right direction and you win. Actually, the ones who survive are often those who understand the invisible rules inside out. There are three hidden killers in contracts, and most people fall victim to them.

**The first is the Funding Rate.** Settled every 8 hours, with longs and shorts paying each other. It sounds insignificant, but it’s like boiling a frog in warm water—gradually eroding your profits. What's the use of being right about the direction? Long-term, the rate works against you, slowly draining your position. How to deal with it? Don’t open positions when the funding rate is exploding. Avoid fighting across multiple settlement periods. If you can stand on the paying side, do so; if on the receiving side, be cautious.

**The second is the Liquidation Price.** Many think that 10x leverage can withstand a 10% reversal, but sometimes a 5% pullback gets you liquidated. Why? Because the liquidation price already includes costs like fees and slippage. The line you see isn’t the real bottom. The solution is to avoid heavy positions, use isolated margin mode to control risk, keep leverage between 3x and 5x, cut losses when needed, and don’t expect exchanges to show mercy.

**The third is the High Leverage Trap.** 100x leverage looks tempting, but it’s actually a fast track to zero. Fees and funding rates are calculated based on the magnified nominal principal, and hidden costs can quickly wipe out your capital. To make consistent profits in contracts, you must first understand these rules thoroughly. Don’t let the details destroy all your profits.