/biz/ - Business & Finance

>>16561824
2/2
In the past 'haircuts' and 'clawbacks' have been used to cover losses from hacks (Bitfinex) or other traders mistakes (Okex):

Bitfinex:
>https://uk.reuters.com/article/us-bitfinex-hacked-hongkong/bitfinex-exchange-customers-to-get-36-percent-haircut-debt-token-idUKKCN10I06H

>Crypto-currency exchange Bitfinex, which lost $72 million to hackers last week, told customers on Sunday they would lose just over 36 percent of the assets they had on the platform

Okex:
>https://webcache.googleusercontent.com/search?q=cache:zS3uOY91TyEJ:https://www.bloomberg.com/news/articles/2018-08-03/a-massive-losing-bet-on-bitcoin-futures-has-investors-buzzing
(Link to Google cache of the article because of Bloombergs paywall)

>The long position in Bitcoin futures listed on OKEx, a Hong Kong-based exchange, had a notional value of about $416 million, according to an OKEx statement on Friday and data compiled by Bloomberg. OKEx moved to liquidate the position on Tuesday, but the exchange was unable to cover the trader’s shortfall as Bitcoin’s price slumped. Because OKEx has a “socialized clawback” policy for such instances, it will force futures traders with unrealized gains this week to give up about 18 percent of their profits.

The point is: Don't leave your coins on any exchange, in the very likely event of a USDT collapse many exchanges WILL be going bust, and if they have resorted to stealing from users to cover relatively smaller losses in the past they will most definitely steal from you again to socialize their share of the 4 billion dollars that evaporates overnight.

>>16561932
>Btc will be lucky to stay above $500 if this happens

Pic related is from OAG court filings, regarding when Bitfinex had a liquidity crisis of its own and couldn't honor withdrawals after 680million was stolen. Now, imagine what happens when all of the exchanges have a sudden shock massive liquidity crisis?