Decentralized perpetual exchange Trade.xyz said it would reimburse traders liquidated when its SK Hynix perpetual futures contract crashed 19% late Monday, a loss the company attributes to a single trade executed on a Korean pre-market platform rather than a failure in its systems.
The price mark, the benchmark figure used to calculate profits, losses and liquidations, fell from around $1,128 to $917 as of 11:01 p.m. 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 powering the contract followed what Trade.xyz called the primary Korean pre-market location.
“The Oracle system performed as expected, according to its specifications,” the company said. Nothing went wrong and no one tampered with anything, based on the evidence so far.
The oracle, a tool that pulls data from outside points into a blockchain-based system, faithfully reported an actual transaction in a market narrow enough that one order moved the price by nearly 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 so again, with eligibility rules to follow and payments expected within days.
