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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.

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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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A weird fact is that in practice even BLP has been a tough sell--lots of people say they want it, but few will bother with the work necessary for it.

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what work is necessary for it? i’ve been exploring it seriously and don’t mind work / leveraging hired help.

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it’s a ridiculously attractive offering

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Not a ton! But the notion of forced fills doesn't fit into most peoples' risk frameworks

6:34 AM · May 7, 2020Twitter Web App

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risk is a wonderful word. is there a resource i can explore the work entailed? i’ve read everything about the program itself but no clue pragmatically how to utilize it.

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Well there's basically nothing you need to do on our side--it's just about deciding if/how you want to hedge/etc. the fills

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