Backpack CEO's thoughts on extreme market conditions: Taking the collapse of FTX as a lesson, Backpack has a robust and transparent risk management system to protect users

Mars Finance News, on April 10, Backpack CEO Armani Ferrante posted on social media that due to market chaos over the past week, Backpack's system load has reached an unprecedented high. The team is continuously working to expand scale to meet the demands of its growing user base. The platform's risk engine has performed well so far, and it will continue to be tested by the market as the business develops. While he cannot guarantee it will be flawless, he believes it will become one of the most critical parts of the Backpack system. As a former software development engineer at Alameda Research, Armani rarely mentioned the FTX failure, pointing out that FTX's collapse educated the market—risk engines and custody are equally important. Backpack learns from FTX's collapse, prioritizing building a robust and transparent risk management system to ensure user fund safety. Backpack does not operate its own market makers, has no motivation to liquidate users, and prioritizes fair liquidation on the order book (99.82% of liquidations are completed directly on the order book), allowing any market participant to participate fairly in trading. Additionally, Armani clarified Backpack's three-step liquidation process (order book liquidation, backup liquidity support, automatic deleveraging), and through gradual liquidation, price impact bands, and other measures, reduces market impact and protects users from unreasonable liquidation.