Everyone's praising Binance's VIP, but I'm here to give a shoutout to Binance's risk management.
This is the post that sounded the death knell for @Humanityprot. From a few adjustments, it’s clear that Binance's risk control responds quickly.
If adjustments to the median deviation are made, there will be issues with multiple CEX price discrepancies, and after observing for a while, it should be hard to keep it under control.
In the early hours, Binance implemented a last price protection mechanism for the perpetual contract on
$H , erasing the price weight of other CEX spot prices.
You can think of it as pre-market contracts, where the focus is on the market share in open interest (OI) and the counterparty situation.
If OI market share is high and there's no counterparty, the ADL forces a liquidation.
If OI market share is low, and the median is cheap with no triggers, it forces a return to self-referencing prices.
In these two scenarios, I can short and profit, then it’s back to the simple long-short game.
Also, due to the pre-market contract situation, the fees won't be outrageous, providing a safe margin.
At this point, I enter a short position, close it out, and call it a day, as mentioned above.
I don't know who to tag for risk control, so I'll just tag
@heyibinance @yayabinance.
The folks at Binance are quite dedicated, they listen to advice and are in tune with the market.
This is the post that sounded the death knell for @Humanityprot. From a few adjustments, it’s clear that Binance's risk control responds quickly.
If adjustments to the median deviation are made, there will be issues with multiple CEX price discrepancies, and after observing for a while, it should be hard to keep it under control.
In the early hours, Binance implemented a last price protection mechanism for the perpetual contract on
$H , erasing the price weight of other CEX spot prices.
You can think of it as pre-market contracts, where the focus is on the market share in open interest (OI) and the counterparty situation.
If OI market share is high and there's no counterparty, the ADL forces a liquidation.
If OI market share is low, and the median is cheap with no triggers, it forces a return to self-referencing prices.
In these two scenarios, I can short and profit, then it’s back to the simple long-short game.
Also, due to the pre-market contract situation, the fees won't be outrageous, providing a safe margin.
At this point, I enter a short position, close it out, and call it a day, as mentioned above.
I don't know who to tag for risk control, so I'll just tag
@heyibinance @yayabinance.
The folks at Binance are quite dedicated, they listen to advice and are in tune with the market.