XRP Price Crash Didn't Lead to Liquidations - BitMEX

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Fri, 02/14/2020 - 20:32
Alex Dovbnya
BitMEX says that their system performed "as expected" when the XRP price dropped to $0.14
Cover image via U.Today

BitMEX has finally addressed the controversial XRP price crash that took place on Feb. 13. In response to U.Today's request for comment, a spokesperson for BitMEX said that there was no system glitch on their side. After conducting an investigation, they've found out that none of its users were liquidated a result of this black swan event.  

"We understand traders' frustration when prices move quickly against their positions. However, we’ve investigated the recent activity on our XRPUSD perpetual swap and our system performed as expected. The Fair Price Marking method meant users (including some who may believe they were liquidated) avoided liquidation no liquidations occurred on XRPUSD during this time period (14:00-14:02 UTC). Stop Market orders set by users to trigger on Last Price within the price range would have been triggered based on this move as designed."  

Related
XRP Price Suddenly Collapses to $0.14 on BitMEX Exchange

She also explained BitMEX's insurance fund doesn't protect users from slippage on a market order. 

"Our Insurance Fund is not intended for use here. It is used to guarantee profits where market conditions may otherwise produce margin shortfalls on the other side of the book."

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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