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A comment on The Bear Case for Crypto, Part II: The Great Bank Run. Parent comment

Re:The Bear Case for Crypto, Part II: The Great Bank Run by banderman on Monday November 27, 2017 @04:59PM (#15791910)
What about all of the exchanges offering significant margin trading? Where does all that credit come from? How can they guarantee that'll all be covered in a significant price drop if the buy side of the book is cleared?
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Re:The Bear Case for Crypto, Part II: The Great Bank Run by dahdum on Monday November 27, 2017 @05:09PM (#15792025)
Polo/Bitfinex are peer to peer lending, so the exchange isn't taking the risk. I'm not sure about Coinbase but I vaguely remember it was outside institutional money funding the margin.

Derivative markets like Bitmex use a form of socialized loss to remove the risk.

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