ОКЕх Issued 2,500 Bitcoins to Cut Socialized Futures Costs
August 6, 2018
Popular crypto platform ОКЕх that forced liquidation of extremely large BTC position several days ago decided to take on some share of costs and add 2,500 Bitcoin to the insurance fund.
As the ОКЕх spokesperson claimed, a user with ID2051247 applied for unexpectedly large position of over 4 million contracts on July 31. The application triggered the company’s risk management department so its experts contacted with the user to convince them lower the position. The user refused so the risk control team opted for freezing the customer account which prevented further growth. Some time after this force action the cost of the major cryptocurrency dropped which resulted in account liquidation.
To compensate the effects of the incident the exchange donated 2,500 Bitcoins due to insurance fund, which earlier made about 10 BTC.
After the incident the exchange plans taking certain measures with modernization of personal risk management system among them. New standards against manipulation in margin deals that limit position size will be applied soon.
One of the Whalepool trader team members said, redistributed cost share after this incident made 17% which is the largest asset holding case for ВТС/USD futures on this exchange.