◇ GLOSSARY
Weekend liquidity
Thin order-book depth and wider spreads when traditional finance is closed and crypto spot market makers run reduced desks — typically Friday night through Sunday UTC. Gaps and cascades on weekend perps are often liquidity events, not new fundamentals.
Crypto perps trade 24/7; liquidity does not. When U.S. and European banks are closed, spot makers often widen quotes or step away. A $500m forced sell that would absorb in an hour on Tuesday can move BTC 5% on a Sunday.
Weekend funding still settles. Holding a crowded long into Saturday on an hourly venue bleeds carry while your exit slippage is worse if the headline hits. December 2021's flush and the FTX weekend depeg both show the pattern: thin books, fast marks, chain liquidations.
If your thesis needs a tight stop, weekend is the wrong environment for max leverage. Reduce size or accept that gap risk is part of the product.