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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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SBF

@SBF_FTX

May 12

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

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.

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

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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

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Have you guys analysed the types of people that use your exchange? Maybe better trades, better risk management compared to others, or maybe not? That would be interesting to see the data