Why do users need vault to take over when their positions are liquidated? Will CEX exchanges have such a mechanism?
Vault funds will not be used in all liquidation situations, but only in the following situations:
① Insufficient market depth, liquidation cannot be completed immediately
If there are not enough buyers or sellers in the market to take over the liquidated positions, Vault will act as a liquidity provider and take over these positions. This can prevent the market from fluctuating violently due to a one-time large-scale sell-off.