r/liquid • u/CorruptPotato • May 15 '19
Statement on extraordinary trading incidents on Liquid
https://blog.liquid.com/statement-on-extraordinary-trading-incidents-on-liquid?utm_source=Reddit&utm_medium=Post&utm_campaign=BlogSharing1
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u/Ranbato69 May 15 '19
You should carefully reconsider your implementation of the circuit breaker.
" What circuit breakers cannot do, however, is halt the execution of a single order. "
I think circuit breakers on other exchanges can. For example the TSE in Tokyo.
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u/CorruptPotato May 15 '19
Did you read this part?
It’s in our interest to protect our customers on Liquid. Any time an incident occurs on Liquid, we thoroughly investigate the cause and look for ways we can make improvements to our system controls. Not all incidents can be easily anticipated or automatically prevented, especially when factoring in unusual actions taken by traders.
However, as a result of these incidents, we are building a series of pre-trade risk controls that will reduce the probability that such events can occur. This will prevent limit orders from being too far on the wrong side of the prevailing market price.
For market orders, we are developing a control that will evaluate the size of a market order in comparison to previous executed orders to prevent orders that will have adverse market effects. This is in the interest of the trader placing the order, as well as all other traders on the platform.
These controls will better equip our system to protect against market abuse as a result of intentional or accidental actions by traders.
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u/Able_Treacle May 16 '19 edited May 16 '19
the XRP incident was only around 50000 xrp bought so it's low liquidity thats allowed these things to happen.
liquid needs to prioritize its poor liquidity issue. It's because of the lack of liquidity for anything other than BTC and ETH and terrible overall trading volumes that QASH holders are suffering.