Hey Animats - Sam here, CTO of BitMEX. We don't assume that anyone suffering a big loss can or will pay up - instead we proactively take steps in real-time to

Hey Animats - Sam here, CTO of BitMEX. We don't assume that anyone suffering a big loss can or will pay up - instead we proactively take steps in real-time to liquidate traders in a controlled manner to ensure that no trader can reach bankruptcy. This way, traders are force-exited from their positions well before they are able to reach anywhere near negative equity. We are indeed incorporated in the Seychelles, but we are open about who we are, unlike some others. Arthur Hayes (our CEO) and I are very proactive about risk, and we use our team's significant experience in finance to ensure that our exchange is constantly minimizing its risk. This is a gain for our customers as well. If BitMEX does not sustain any systematic loss, it can guarantee settlements. And since it guarantees settlements, it is finally an exchange where businesses and traders can actually hedge risk in Bitcoin, without having to simply sell coins.