TechFlow news — FTX founder Sam Bankman-Fried (SBF) tweeted that effective margin systems are an essential part of any efficient economic system. However, everything has its limits. We put significant effort into FTX's margin system: allowing users to cross-margin most assets on the platform. This meant managing one wallet instead of hundreds; it also meant significantly fewer liquidations. Any margin system needs liquidations as a backup, but the goal is to rarely use them. At FTX, less than one percent of trading volume came from margin calls. Therefore, after extensive discussions, today we are eliminating high leverage on FTX, capping it at 20x maximum.
Add to Favorites
Share to Social Media
