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1) What does this mean in practice?

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5) And we think that the margin model is safe and conservative: real time risk engines mean you neither have to preemptively liquidate days early, nor risk positions going underwater for days. ftxpolicy.com/ftx-guaranty-f

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11:29 AM · May 12, 2022Twitter Web App

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2) Well, over the last week, we've seen a 40% market move. In the past *day*, more than $50b has traded on FTX. How has the risk engine performed?

SBF

@SBF_FTX

May 12

3) It's been operational the whole time, 24/7. It requires about 10% of the initial margin as current US futures exchanges do. (FTX US Derivatives would be more conservative.) Have there been any mutualized losses? Fuck no.

SBF

@SBF_FTX

May 12

4) As always, insurance fund activity was small. Today was the highest volume day in crypto history, and insurance fund needed way less than 1% of the guaranty fund we've preemptively created for FTX US Derivatives. And that's all _our_ skin in the game, no one else's.

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SBF

@SBF_FTX

May 12

5) The standard risk engine and BLP system ran smoothly. As always, the real time nature and pre-collateralization meant that the risk engine didn't have to margin call accounts with tons of collateral, but still successfully managed risk. ftxpolicy.com/ftx-guaranty-f