100 sats \ 0 replies \ @konstantin 28 Oct 2022 freebie \ parent \ on: Kollider AMA bitcoin
Currently the risk engine works like this. If a position gets liquidated then the risk engine tries to:
- Find another person in the market to take on the position (best case scenario).
- If there is no one that takes on the position at the liquidation price or better then the insurance fund will pay for the difference.
- If the insurance funds is depleted and no other person is in the market then automatic deleveraging takes place. This means that positions of winners are force closed (worst case scenario).