Margin trading and P2P funding are getting pushed towards new horizons on @bitfinex !
All this was made possible to the huge matching engine performance improvements achieved in the last months.
#Bitcoin
#Ethereum #XRPCommunity $XRP $LTC https://twitter.com/bitfinex/status/1230760756179693568 …pic.twitter.com/HgaFgZ1oTJ
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Replying to @paoloardoino @bitfinex
it would actually be better if you had leverage insurance once your insurance runs out you lose everything
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If you refer to perp swaps they are a different product and we offer them too https://www.bitfinex.com/t/BTCF0:USTF0 https://www.bitfinex.com/t/ETHF0:USTF0 with a proper insurance fund
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How does the insurance fund work and what makes it proper? Interested to learn more ;)
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1/2 Our liquidation system is designed to minimize the impact on the account and books. First we try to liquidate the position into the book up to a max slippage / USDt equivalent.
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Replying to @paoloardoino @BitHeika and
2/2 The reminder gets taken over along with allocated margin (since Finex works in isolated margin to ensure users have a perfect way to limitate their risk) and the system splits the position in many small orders, adsorbing the loss on the insurance fund.
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Where does the insurance fund come from?
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Finex offered the initial 400k USDt
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And subsequently how does it continue to grow? Part of the fees collected?
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The algorithm that handles liquidation is designed to allow market makers to interject liquidation orders so that the fund can grow over time. We are considering also to add fees. So far it grew 20k, not bad for our non-inflated market
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Yeah, noticed that it grew which brought on the question. Still not sure what interject is but like that liquidations are handled in a way that protects users. Kudos!
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