1. No, 2. Yes (someone took the other side of every trade) but I'm sure people who sold at a price lower than the current best bid would prefer a do-over, 3. what would "handling" it be? Everything appears to have operated as expected. The event was entirely predictable.
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I would like to see a change to use a market price based on the entire market instead of kraken only when triggering liquidations. The system worked far from expected as no one was able to place market orders to buy the dip on time like they did on other exchanges.
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Furthermore, who do you think we're the people on the other side of the trades? This seemed coordinated as only prexisting buy orders were really able to profit from this.
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To add to this, the couple people that got to buy today at these prices are the people you will keep around. The thousands of users like myself who were wrongfully liquidated will not be using or promoting Kraken ever again.
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Well, it's not "wrongfully" liquidated. It's liquidated according to the Terms. The movement was entirely predictable and just because the other exchanges didn't follow, it doesn't mean that it was impossible that they could have. Did you honestly not understand how it works?
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To be fair, I'm on the defense :) I do have an open mind about the issue. What I'm hearing though is people saying they just didn't understand how markets work at the time they placed their orders.
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Forget about the price movement and liq prices. Do you agree with the fact your API / site / app were unusable at the most crucial time preventing users from de-risking their positions just before that flash crash happened?
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No. I'm not aware of any API/site/app usability issues prior to the price movement. If you saw the flash crash coming, why wait until the last minute to adjust, anyway?
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Should I include in my risk management that I should not time my trades as efficiently as possible because I have to consider the platform will fail me at the worst time? I really feel like you're asking me why I would assume the platform will remain reliable. Quite confusing...
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It's called counter party risk and yes, you should consider it as part of your strategy. There are some exchanges I don't trade on, even though they have better prices, because I think I could lose 100% of my funds to a hack at any time. You absolutely need to price venue risk.
Gotcha, so don't trade on in order to manage my risk.
It's a shame because when I first got into crypto I watched podcasts with you and thought you were generally level headed, but I see that today's price action is getting the worst of everyone.
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You just have to price your risk. Trading with leverage is certainly riskier than trading without leverage. Maybe don't use leverage if you're not willing to accept the liquidation risk. I'm sorry I wasn't able to help you understand how the markets work prior to this.
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I'm actually amazed that you're basically telling to just get used to your system crashes and if I consider it too risky I should trade somewhere else (if no misunders). As one of your clients I am dumbfounded. Probably better to let it cool down you are clearly on the defensive.
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