BitMEX Experiences XBTU19 and ETHM19 Auto-Deleveraging Events; What Happened?
BitMEX, one of the most popular cryptocurrency exchanges in the market, has suddenly been affected by auto-deleveraging issues. 200 positions across XBTU19 and ETHM19 encountered these erroneous issues. However, the platform explained that affected users will be compensated at the best possible price.
BitMEX Experiences Erroneous Auto-Deleveraging
In a recent blog post released by BitMEX, they informed that on April 2, between 04:44:32 UTC and 05:22:08 UTC, less than 200 positions were auto-deleveraged. The crypto platform explained that the Insurance Fund allocated to these contracts was minimal.
The firm mentioned that they have a process in place to roll over the Insurance Fund allocated of these contracts into the next front month contract. Apparently, with the recent expiry on March 29, the process failed and front-month contracts didn’t receive their allocation.
On 2 April 2019 between 04:44:34 UTC and 05:22:08 UTC, less than 200 positions across XBTU19 and ETHM19 encountered erroneous auto-deleveraging. Users who were affected have been compensated at the best possible price. Refer to our blog [https://t.co/kst0ysfhMX] for more detail.
— BitMEX (@BitMEXdotcom) April 2, 2019
The firm explains that they receive these auto-deleveraging reports and is aware of the high rate of these events. Thus, they have decided to investigate the matter and identify the root cause. They have already corrected the allocation and implemented new controls to avoid these issues to be repeated in the future.
Affected users will be reached by BitMEX personally and they will receive a proper explanation and document the compensation. The firm was able to compensate users according to their maximum potential profit.
The company informed in its blog post:
“We exited these users at the best price of each contract: longs at 5,079.5 on XBTU19 and shorts at 0.03103 on ETHM19. BitMEX did not profit from these auto-deleveraged positions.”
BitMEX is one f the most popular cryptocurrency derivatives trading platforms in the market. It allows users to speculate on the future price of virtual currencies.
Today, the price of Bitcoin has experienced the largest daily increase since April 2017. The digital asset surpassed $5,000 for a few moments and it dropped back to $4,750.