Trade.xyz said it will absorb liquidation losses tied to an abnormal move in its SK Hynix perpetual contract, even as it maintained that its oracle system operated as designed. According to the platform, at 23:01 UTC on July 27, the SKHYNIX mark price fell from $1,127.9 to $917.25, triggering user liquidations. Trade.xyz said the mark was derived from an executed trade and that the data was relayed by multiple independent providers.
Despite saying the system functioned normally, the company said it would take responsibility for losses caused by the incident. Eligibility requirements for compensation will be released soon, with distribution expected to be completed in the coming days. Trade.xyz described the move as a one-time discretionary decision rather than a standing commitment for future cases.
The platform also said it will speed up a review of how prices are formed, including reassessing assumptions tied to external venues and considering price signals from its own order book.
Trade.xyz said it will cover liquidation losses stemming from the SK Hynix perpetual contract price spike incident.
In its statement, the platform said that at 23:01 UTC on July 27, the SKHYNIX mark price dropped from $1,127.9 to $917.25, which triggered user liquidations.
Trade.xyz said the price was generated from an executed trade, with the data relayed by multiple independent providers. It added that the oracle system functioned normally and according to design.
Even so, the company said it has decided to absorb the liquidation losses caused by the abnormal event. Eligibility requirements will be announced soon, and distribution is expected to be completed in the next few days.
Trade.xyz also said the decision is a one-time discretionary measure and does not guarantee similar action in future cases.
The platform said it will accelerate its review of the price formation mechanism, including revisiting assumptions about external venues and considering price signals from its own order book.
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