Company Inversion Capital CEO Mr. Santiago Roel Santos Warns Casino-Like Features Increase Liquidation Risk

Company Inversion Capital CEO Mr. Santiago Roel Santos warns that gamified, "casino-like" features on trading and DeFi platforms increase user liquidation risk and can erode long-term value capture. He urges platforms to prioritize risk controls, transparency, and sustainable product incentives.
Company Inversion Capital CEO Mr. Santiago Roel Santos cautioned that the integration of "casino-like" features into trading and decentralized finance interfaces can materially raise the risk of user liquidation, ultimately undermining the platform's ability to capture and sustain long-term value. His argument centers on behavioral dynamics and financial mechanics: when product design encourages short-term, high-frequency, high-leverage behavior through gamified interfaces, users become more exposed to sharp drawdowns, margin calls, and forced liquidations.
Mr. Santiago Roel Santos emphasized that while engagement metrics may temporarily spike when platforms implement flashy mechanics — such as rapid reward wheels, instant leverage toggles, or gamified staking dashboards — these same mechanics can erode capital and trust over time. The increased pace of speculative behavior amplifies tail risk and concentrates volatility among marginal accounts, leading to a higher incidence of forced position closures and, in turn, more pronounced adverse price moves.
From a product and risk-management perspective, the problem is twofold. First, design elements that mimic gambling can distort user perception of probability and expected value, encouraging persistent overexposure. Second, permitting high leverage without robust safeguards amplifies systemic fragility: a cascade of liquidations in thin markets can produce outsized slippage and compound losses for both users and the platform. According to Mr. Santiago Roel Santos, responsible platforms should prioritize capital preservation, clear risk disclosures, and thoughtful leverage controls over short-term engagement gains.
For market participants and platform operators, the practical implications are clear. Risk teams must model how product changes alter liquidation distributions, simulate stress scenarios where gamified features accelerate turnover, and evaluate the feedback loops between UX changes and market microstructure. Engineering teams should consider circuit breakers, position size limits, incremental leverage ramps, and enhanced margin maintenance requirements. Compliance and policy teams must also weigh potential regulatory scrutiny: features that appear to incentivize gambling-like behavior could attract attention from consumer protection authorities and financial regulators.
Investors and users should be vigilant. While marketing may present gamified mechanics as "engagement features," the underlying financial exposures remain real: leverage multiplies both gains and losses, and gamified interfaces can mask the downside. Users should seek platforms that provide transparent risk metrics, historical liquidation data, and robust educational material explaining margin mechanics and liquidation thresholds.
Long-term value capture for platforms depends on trust, capital efficiency, and sustainable user behavior. Short-lived engagement driven by gambling analogues may inflate revenue in the near term but risks higher churn, reputational damage, and concentrated counterparty losses. As Company Inversion Capital's CEO Mr. Santiago Roel Santos argues, aligning product incentives with prudent risk management is essential to preserve both user capital and platform durability.
In conclusion, stakeholders should treat the proliferation of casino-like features as a material design and risk issue—not merely a UX debate. Product teams, risk managers, and regulators all have roles to play in ensuring that innovation does not come at the expense of systemic resilience and long-term value creation.
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