On April 10, Backpack CEO Armani Ferrante posted on social media that the system load on Backpack has been unprecedentedly high due to market chaos over the past week. The team is constantly working to scale to meet the needs of its growing user base. The platform's risk engine has performed well so far and will continue to be tested by the market as the business continues to grow. Although I can't guarantee it will be perfect, I believe it will become one of the most critical parts of the Backpack system.

As a former software development engineer at Alameda Research, Armani mentioned the failure of FTX this time, pointing out that the FTX crash educated the market – the risk engine is as important as hosting itself. Backpack takes the FTX crash as a lesson and prioritizes building a robust and transparent risk management system to ensure the safety of user funds. 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 liquidation is completed directly on the order book), allowing any market participant to participate fairly in the transaction.

In addition, Armani also clarified the three-step liquidation process of Backpack (order book liquidation, backup liquidity support, automatic deleveraging), and reduced market impact through gradual liquidation, price impact bands and other measures to protect users from unreasonable liquidation.