Svmuu, Sonic co-founder Andre Cronje stated that during the first major market retracement experienced by derivatives platform FT FlyingTulip, the equity-based account lending model resulted in only approximately $50,000 in liquidations. FT employs net risk calculations rather than a discounted collateral model. The soft liquidation mechanism functioned as intended, with the average liquidation amount per transaction ranging from $200 to $2,000. Andre Cronje indicated that if a traditional loan-to-value (LTV) based lending system had been in place, the liquidation scale during this market volatility could have been 10 to 20 times larger.