Conversation

Zhu Su 🔺
@zhusu
We are getting words confused here I think. I'm not arguing they should be legally liable. I'm saying if this were to occur on an exchange, it clearly means that exchange is unfit to have margin trading.
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Jesse Powell
@jespow
So you're arguing for circuit breakers or limitations on order management to prevent a price from moving despite intent of the market participants? How do you know when your market is out of sync vs leading? How long do you wait to find out and who gets blamed when you're wrong?
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Zhu Su 🔺
@zhusu
Max order size, max percent limit away from mid, enter auction mode (allows arbers time to prepare capital to arbitrage the flow). Many such concepts can be taken from trad mkts (esp FX, equities) I agree there are always tradeoffs and new problems would then arise potentially
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Jesse Powell
@jespow
Yeah, ultimately the answer is more liquidity with time. In some cases people are glad you liquidated them instantly, in others mad that you didn't wait longer. Someone will always end up holding the bag. It's very hard with 24/7 continuous, loosely connected global markets.
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Jesse Powell
@jespow
Everything is gameable/hackable -- it's just a matter of whether the risk-adjusted returns of the attack make it worthwhile. Problem arises where the value exceeds the security. Contract participants need to look at the total value of an attack in addition to the index quality.
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