coinspectator - 2/11/2019 5:25:47 PM - GMT (+0 )
Thus, an extremely robust system of assurances exists to fund such institutional clearing houses, eventually finding recourse in legal and even government action to support solvency - which BitMEX, of course by choice, have no access to. BitMEX use this liquidation to pay winning traders, in addition to adding to the insurance fund - if and only if market liquidity is “tighter than the maintenance margin.” BitMEX make the case that this c. 21 thousand bitcoin fund is needed to cover gains owed to traders, pointing out that the fund has been entirely liquidated before (within five minutes, no less), and could happen again.
Criticisms Others have seen this giant fund as excessive, and even as perverse incentive for BitMEX to trade against their own customers - allegations which the exchange has denied. Independent crypto researcher Hasu has in no uncertain terms called the fund “larger than it needs to be” (at a time when the fund was considerably smaller) and speculated that BitMEX may use the fund as a “second additional income stream other than commissions.” His “main concern” is with the status of the fund’s ownership; namely, the insurance fund is squarely controlled by BitMEX rather than “an external insurer or industry consortium.” Coin spectator is an automated news aggregation service. All copyrights belong to their respective owners. Images and text owned by copyright holders are used in reference to and promotion of those respective parties. Read in Full