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May 5, 2020

Can exchanges "outsource" their risk and liquidation engines to a third party that will provide and manage an insurance fund? Given, how

@bitmexdotcom

had grown their insurance fund over the past 3 years, I would personally be interested in investing in such a model.

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That would be cool--we thought about something like that for BLPs, didn't do it because it seemed a bit too complicated and we were worried that a complicated system is exactly what you don't want when shit's going crazy.

3:33 PM · May 5, 2020Twitter Web App

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My bad :) Yeah mostly I worry that when things are breaking down no one's bots will really be bidding very well for liquidations, but still might be worth it

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yea the problem with having a sort of RFQ mechanism is that it requires a delay to get bids/offers from LPs, but you guys already do multi-second delays in liquidation so in your system would not be so odd to have auto RFQ in the gap to fill them