OKEx, the cryptocurrency trading platform, is seeking feedback, advice, and questions from the crypto community. The company posted on their Medium blog today, talking about the risks of manipulations in the futures markets, societal losses, and other trading issues. They have also talked about the enhancement of the roadmap of their futures trading products in order to make the trading environment fairer.
What Did OKex Say?
OKEx detailed everything about technological scaling, margin rules, risk management and more. The exchange said it wants to work more on increasing API limits, supporting more underlying assets, and the optimizing and scaling of its matching engine.
The exchange wrote:
“We have spent a significant amount of time optimizing our core matching engine to support a higher limit on different protocols. The upgrade is being finalized and expected to complete in mid-August.”
After the development is complete in August, the upgrade will help in increasing the stability and scalability of the system. They also suggested that the exchange’s API will be rebuilt to bring more features. The beta testing of the API is also underway which is expected to complete by the middle of August.
What Does OKex Wish to Achieve?
The exchange also suggested that they are looking into safeguarding users from unnecessary liquidation by large-scale market manipulation.
“A mark price will be employed to calculate the unrealized PnL, margin ratio, and estimated bankruptcy price. Hence the forced liquidation will only be executed with the reference to the mark price.”
They also defined the formula of the mark price, “Formula of Mark Price: Spot Index Price + EMA (Futures Market Price — Spot Index Price).” They believe that using this formula will help in increasing the cost of market manipulations. This feature is also expected to launch in August.
The exchange also wishes to achieve a tiered margin system and forced liquidation optimization. OKEx also wants to prevent cascade liquidation, which will help in depleting the insurance fund and trigger a clawback mechanism. The exchange will maintain the margins of each user, depending on their holding positions. Ideally, the larger the position that the person holds, the higher the margin is. Moreover, it would help in lowering the leverage.
OKEx Aims to Make Their Futures Trading Products Better and Fairer – With the Help of the Crypto Community was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.