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2) We worked hard on our margin system at FTX: allowing users to cross-margin most assets on the platform. It means needing to manage one wallet instead of hundreds; it also means massively fewer liquidations.

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3) Any margin system needs to have liquidations as a backup, but the goal is to do so rarely. At FTX, way less than a percent of volume comes from margin calls. This contrasts with a few platforms which are sometimes > 5%, and some which removed data because it looked bad.

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Bitcoin Liquidations-Bitcoin Liquidations Chart-Bitcoin liquidations live-bitmex rekt-Coinglass

4) (bybt.com/LiquidationData for data) This is partially because we try to encourage responsible trading. Our product and margin system also tend to attract sophisticated users.

coinglass.com

The Liquidations counts the real-time Liquidations of all exchanges and currencies. The liquidation history of all exchanges can be viewed through the historical Liquidations. The liquidation list...

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5) We also try to avoid being punitive; liquidations on FTX start with normal orders without any extra loss. And, again, it's a tiny fraction of our volume.

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6) All of that being said, there's been a bunch of discussion recently around high leverage (> 20x). Nearly every crypto derivatives exchange allows it, and nearly every one will say the same thing: It's a tiny fraction of volume and positions.

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7) For us, like liquidations, it's way less than 1% of our volume and positions. It's not a significant part of the exchange. It's also not what chiefly contributes to volatility. Liquidations do, one some exchanges (although generally not so much FTX!). But > 20x is small.

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8) The average leverage used on FTX is ~2x. And while we think that many of the arguments are high leverage miss the mark, we also don't think it's an important part of the crypto ecosystem, and in some cases it's not a healthy part of it.

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9) And so, after lots of back and forth, we're going to be the ones to take the first step here: a step in the direction the industry is headed, and has been headed for a while. Today, we're removing high leverage from FTX. The greatest allowable will be 20x.

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10) Again, this will hit a tiny fraction of activity on the platform, and while many users have expressed that they like having the option, very few use it. And it's time, we think, to move on from it.

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