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How to Do Fraud at a Futures Exchange

• robocat 4y ago
  > If a bettor’s account ever gets below zero — if Bitcoin has moved so far against her so quickly that you didn’t have time to ask for more [margin] money or close out her bet, and now she owes more on the bet than she has in her account — then that’s bad. You still have to pay out the winner on the bet, but you can’t collect from the loser. Is there any reason that exchanges need to take on that risk? Why not design a market so that the contracts are limited to match exposures e.g. cap upside potential to the collateral provided on margin. If margin collateral is 20%, then limit profit to the 20%. Or perhaps use odds instead, similar to prediction markets.
  • benlivengood 4y ago
    Brokers don't have to take on any margin lending risk at all if they don't want to. My 401(k) broker won't let me invest on margin. Brokers benefit from the increased percentage fees on trades so want to find the optimal risk/reward margin limits. Maybe part of the problem is conflating brokers and exchanges in typical cryptocurrency setups. Brokers offer margin accounts and exchanges offer settlement between parties and take no real risk.
• samwillis 4y ago
  Mirror: https://archive.ph/TVgZF https://archive.ph/TVgZF
  • warinukraine 4y ago
    Thank you! I've been sitting here hitting F5 hoping someone would post. How do you obtain this?