Published on August 3rd, 2018 | by bitcoin0
Large Bitcoin Failure Leads to $9 Million Clawback says Okex
After a user made an “enormous” gamble on bitcoin futures, and lost, Hong Kong-based cryptocurrency exchange OKEx said it is having to claw back millions from counterparties.
Each futures contract has a notional value of $100, according to OKEx, so the total value of the position was over $400 million.
OKEx said it had also injected 2,500 bitcoins into its insurance fund – worth around $18 million at press time – to limit the damage to traders.
A societal clawback happens when the platform’s insurance fund is not able to cover investors’ total margin call losses.
In such case, only users who have a net profit across all three contracts for the week will be subject to the clawback,” the exchange explained on Friday.