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What Happened on BitMEX During Black Thursday

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What Happened on BitMEX During Black Thursday

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You're on a very volatile day neck that and a lot of people basically trays on picnics entries on those exchanges that somewhat against allowed each other when you lose one of them is also creates a lot of trouble maybe to have for example chickens that when used picnics. You're closer position on exchange to this many basically when losing bit makes availability to you to the steelers attacked somewhat created a sort of shocking system both by removing the launch center market and also by probably shutting down a little training during operations. Wow so let's dive a little bit more into those liquidations at the point that you're discussing I think this is when one point one billion dollars worth of contracts were liquidated so can you dive a little bit more into how liquidations work on Max so when someone makes a trade on big MACs to have to put what is called margin so if I want a bed a beacon. I want bet one. Bitcoin and the price is going to go up. I have to put at least not point. One bitcoin on it on his spent. Israel hundred x leverage. And some of these mortgage you put up so this this one percent is kept aside as a buffer so when the price goes the wrong way of your at some point you get trade. Get Stop so that you don't lose all money as a small buffer that he's kept of margin by dictionaries to close this position to basically. You were wrong. We're going to cancel your pet basically if you were wanting to buy bitcoin looking sell it. If you're selling it we looking to buy it so that you don't use money. It's not always possible to do that at the right price. So liquidation engine is basically the system addressing shortage of closing the positions of traders that ran out of money basically and its workings are somewhat mystery and a half to be because if people knew exactly hide worked. It's basically a game of a human's as rebel and often times of robot loses except maybe a chess so the inner workings are somewhat obscure. It's basically a an automated biosensor in normal variations. Have Two people that go that bet. The bitcoin is going to go up from town. It's rare that as happen on Black Thursday that everyone on one side so everyone wanted to go up ended up being wrong that day and quite dramatically so This engine basically takes these positions traders basically get liquidated and tries to close them. Had like Thursday's is that there were there. Were few people warning to bet on the other side or maybe too many people actually got liquidated. There's also another mechanism that guessing to place the insurance fund. There's been a lot of talk about big mixes Insurance Fund. But he's basically a way to make sure that If even if liquidation engine doesn't manage to close the traders position by making a small profit basically your bitcoin up you lose your pet still a bit of money left in your in what you put in to try to make to close a position with the perfect. British can still happen. These negative and the role of the Insurance Fund is to be basically buffer of money. That deliberation engine can use as a losses and when mix engine makes a profit. It goes to wants these insurance and finally doesn't last mechanism. That actually don't know if it's been used in his Thursday schooled O- to deliver gene in basically when nothing works but big MACs do does to avoid Basically losing people's money at least having people end up with negative balances it has sometimes happened on on other platforms is to basically make people with winning positions bay people with Okada losses of people risk losing positions so that Indian. No one's ended up owing bit next month