Decentralized perpetual securities exchange Trade.xyz said it will refund traders liquidated when its SK Hynix perpetual futures contract plunged 19% late on Monday, a loss the company attributes to a single trade executed at a small pre-Korean market venue rather than any glitch in its systems.
The mark price, the reference figure used to calculate profits, losses and liquidations, fell from approximately $1,128 to $917 at 23:01 UTC on July 27, according to the company. The print came from an executed trade relayed by multiple independent data providers, and the data point feeding the contract tracked what Trade.xyz called the top Korean pre-trade venue.
“The Oracle system performed as expected according to its specifications,” the company said. Nothing failed and no one tampered with anything, according to the evidence so far
The oracle, a tool that retrieves data from points external to a blockchain-based system, faithfully reported a real trade in a market thin enough for one order to move the price by almost a fifth, and the contract liquidated positions accordingly.
Trade.xyz said covering losses is a one-time discretionary decision rather than a commitment to do it again, with eligibility rules to follow and payouts expected within days.
