trade.xyz said it will compensate users for liquidation losses linked to an unusual move in the SKHYNIX mark price, after the token’s mark price fell from $1,127.9 to $917.25 at 23:01 UTC on July 27. In a post on X, the platform said the price was derived from an executed trade and then relayed by multiple independent data providers. It added that the XYZ oracle was functioning within its external pricing setup and was tracking what it described as a major pre-market venue in South Korea.
Even so, the exchange acknowledged user dissatisfaction over liquidations triggered by the move. trade.xyz said eligibility criteria for compensation will be released soon, with distribution expected over the next few days. The company also said the payout is a one-time discretionary decision and should not be treated as a commitment to take the same approach in future incidents.
Looking ahead, trade.xyz said it plans to improve its pricing system for tail events and speed up its review of how prices are formed, including a reassessment of assumptions tied to external venues and whether price formation from its own order book should be considered.
trade.xyz said in a post on X that it will compensate users for liquidation losses attributed to an unusual move in the SKHYNIX mark price.
According to the platform, the SKHYNIX mark price fell from $1,127.9 to $917.25 at 23:01 UTC on July 27. trade.xyz said the price was based on an executed trade and was relayed by multiple independent data providers.
The company said the XYZ oracle remained operational within its external pricing framework and was tracking a platform it described as a major pre-market trading venue in South Korea. In its account, the oracle system functioned according to specification.
Still, trade.xyz said users were dissatisfied with liquidations triggered by the move, even though the system had operated as designed. The company said it has decided to compensate liquidation losses attributed to the anomaly. Eligibility requirements will be announced soon, and distribution is expected to be completed in the coming days.
trade.xyz also said the decision is a one-time discretionary measure and does not guarantee similar action in the future.
Separately, the platform said it will improve its pricing system to better handle tail events and accelerate its review of how prices are formed. That review will include reassessing assumptions related to external trading venues and considering price formation from its own order book.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
