According to Tetranode, Protocol FX offers liquidation protection by selling a portion of collateral at 88.8% Loan-to-Value (LTV) to maintain the LTV just below this threshold. This strategy effectively prevents liquidation by rebalancing the position to maximize long exposure at the bottom, thus avoiding funding fees and liquidation risks.

According to Tetranode, Protocol FX employs a 0 liquidation strategy by selling some collateral at 88.8% Loan-to-Value (LTV) to maintain the LTV just below this threshold. This approach allows traders to max-long at the bottom instead of facing liquidation, with no associated fees or liquidation events.