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.
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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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Wow another prime response. I understand how it works, like I said before. What I don't understand how you can let your exchange become unresponsive so no orders go through other than liquidations sells. How much did Kraken lose on those liquidations today?
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I don't believe the system was unresponsive today. I think there's a misconception that something could have been done to stop liquidations once they had started. Kraken wasn't trading so we wouldn't have had any liquidations.
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The trading and liquidation platform work well in theory, but not in practice it seems. Especially for an exchange that only offers up to 5x margin, you would not expect to see this wild of swings.
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