OKEx Injects $18 Million (2500 BTC) in Forced-Liquidation To Reduce Clawback Damages

2018-8-4 23:36

OKEx Confirms $9 Million USD Clawback After Huge Bitcoin Future Fails

The Hong Kong-based exchange OKEx has recently needed to claw back millions from counterparties after a user made a huge gamble on Bitcoin futures and lost. According to the exchange, it had to liquidate an unusually large long position of 4,168,515 Bitcoin futures contracts held by a client of the group when he declined to lower his positions.

As each futures contract had a value of $100 USD, the user had a total of $400 million USD invested. The company decided to freeze the account of the user and to liquidate its assets. The spokesperson of the company told the media that OKEx had no choice but to liquidate the contracts because of the size of the order.

The risk was simply too high if the price of Bitcoin dropped, according to sources, so it had to trigger this choice. After insurance cover, the loss of the investors will be of almost $9 million USD, that is, 1,200 BTC. The loss will be split proportionately by all the traders.

OKEx Maintains Order in the Futures Market by Injecting 2500 BTChttps://t.co/TQUS9MoRPb

Click here to find more previous announcements: https://t.co/huOjZzJF73 #OKExannouncement pic.twitter.com/SiyH59LwXe

— OKEx (@OKEx_) August 3, 2018

According to OKEx, it had injected 2,500 Bitcoins into its insurance fund, which was worth $18 million USD at the time, to limit the possible damages to the company and investors.

Societal Clawbacks

A societal clawback is when the insurance fund of a certain platform is not able to cover the margin call losses of the investors. When this happens, the counterpart investors, the ones with the short positions, have to make up for the shortfall.

According to the spokesman, a full account clawback needs to happen when the insurance fund cannot cover the total margin call losses and this is what happened, as the other users did not have a net profit across all the contracts.

.@OKEx_ shouldn't have allowed a position to be 50% of the Open Interest in the first place, they have put themselves in a delicate position after that position got liquidated.

clawback is 17%, means even those who shorted the move paid for OKex mess.

— Blues Crypto (@BluesCrypto) August 3, 2018

This is how hard I have been fucked over by their socialized loss system, @OKCoin @OKEx_ Their risk management is intended they say. Retweet so the world knows. #bitcoin #btc #cryptotrading pic.twitter.com/sNvfgJxxaP

— ibankbitcoins (@ibankbitcoins) August 3, 2018

Summary of Unfilled Liquidation resolution:

– OKex injected 2,500 BTC to bring clawback for the period to 17% (would have been up to 40% otherwise)

– Resulting rebased position from $8020 to $7483 got gobbled up by market within first 3 minutes of post-settlement trading pic.twitter.com/3Eqc7h9kOv

— Whalepool (@whalepool) August 3, 2018

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 66141.03 (-0.22%)
Объем 24H $18.778b
Изменеия 24h: -1.13 %, 7d: 8.37 %
Cегодня L: $66141.03 - H: $66190.49
Капитализация $1303.015b Rank 1
Цена в час новости $ 7449.94 (787.81%)

bitcoin okex huge clawback exchange futures million

Источник: bitcoinexchangeguide.com

bitcoin okex → Результатов: 26


Фото:

Macro Strength: Bitcoin’s Price Moves Higher Despite Plethora of Bad News

Bitcoin faced some intense selling pressure yesterday evening after news broke regarding the founder of OKEx being arrested by the Chinese authorities This is simply another set of news that has rocked the crypto market, but its impacts on Bitcoin’s price action has been surprisingly muted It does not appear that investors aren’t too concerned that the prospect of OKEx users losing their BTC will strike a blow to the crypto’s technical outlook Some analysts […]

2020-10-17 21:00


OKEx Launches New Bitcoin Derivative: Cryptocurrency Perpetual Swaps

Malta-based cryptocurrency exchange OKEx launched a cryptocurrency-focused Bitcoin Perpetual Swap product on December 3, 2018, during a press conference attended by CryptoSlate. The virtual derivative product is a peer-to-peer offering that aims to empower traders with the ability to speculate the price direction of digital assets like Bitcoin and Ether to ensure exposure to the risky, yet […] The post OKEx Launches New Bitcoin Derivative: Cryptocurrency Perpetual Swaps appeared first on CryptoSlate.

2018-12-4 14:30


Криптобиржи OKEx и Kraken открывают торги Bitcoin SV

Биржа OKEx запускает торги BCHABC и BCHSV в парах с BTC, USDT, Ethereum и OKB, а также начислила эти монеты держателям Bitcoin Cash. Когда для новых активов станут доступны фьючерсы, маржинальная торговля и фиатные пары – пока неизвестно.

2018-11-20 14:41


OKEx futures unfilled BTCUSD liquidation of $460 million

The cryptocurrency community is abuzz with news of a $460 million Bitcoin overhang, while it waits for the shoe drop. The community and traders of OKEx have been following and keeping a close eye on the digital trail of a trader that has said to have accumulated a $460 million dollar long position on BTCUSD’s The post OKEx futures unfilled BTCUSD liquidation of $460 million appeared first on ItsBlockchain.

2018-8-3 15:18


Партнеры Currencies.ru

Реклама на Currencies.ru

Самое свежее на Currencies.ru

Ethereum's transaction size falls 54%: Why it's not bad news for ETH

ETH could be close to its bottom after the transaction size failed to spike. While the price might slip, traders are convinced of a quick recovery. On the 19th of May, AMBCrypto observed thaThe post Ethereum's transaction size falls 54%: Why it's not bad news for ETH appeared first on AMBCrypto.

Whale watch: $1B in Toncoin trades shake the market, tracking what's next

Toncoin has seen a surge in whale activity on its network. TON, however, is at risk of a price decline. Toncoin [TON] has witnessed a spike in whale activity on its network in the past few wThe post Whale watch: $1B in Toncoin trades shake the market, tracking what's next appeared first on AMBCrypto.

Predicting how ETH will react IF the SEC approves Ethereum ETFs

Coinbase analyst sees a 30-40% chance of approval for Ethereum ETFs. Ethereum's dominance and performance are at a low, suggesting a need for positive development soon. It is generally belieThe post Predicting how ETH will react IF the SEC approves Ethereum ETFs appeared first on AMBCrypto.

Ethereum sets sights on $4K: Will THIS spark a new rally for ETH?

ETH was up by more than 6% over the last seven days.  A few of the metrics suggested that the bullish momentum might not last.  Ethereum [ETH] caught investors off guard as its price gaineThe post Ethereum sets sights on $4K: Will THIS spark a new rally for ETH? appeared first on AMBCrypto.

Ethereum ETFs progress, but Solana may turn things bearish instead - How?

New data indicated that the likelihood of approval of Ethereum ETFs was relatively high. Ethereum lost market share to Solana, however, the price of ETH continued to surge. Ethereum [ETH] haThe post Ethereum ETFs progress, but Solana may turn things bearish instead - How? appeared first on AMBCrypto.

Fantom Sonic: Will Ethereum integration help FTM's price?

Fantom disclosed that Ethereum would enable the token migration. While FTM's price increased, reaching $1 could be challenging in the short term. Layer-1 blockchain Fantom [FTM] has discloseThe post Fantom Sonic: Will Ethereum integration help FTM's price? appeared first on AMBCrypto.

Avalanche [AVAX] jumps 7% ahead of token unlock: Is $43.50 coming?

Volatility around the token may be low, considering it has previously released 60% of its supply. AVAX might hit $43.50 if the volume continues to back the price action. The price of AvalancThe post Avalanche [AVAX] jumps 7% ahead of token unlock: Is $43.50 coming? appeared first on AMBCrypto.