Re:The world's first Bitcoin-settled index futures
by joosters on Wednesday February 05, 2020 @08:01PM
(#22252552)
Apparently you also have to trust all the other anonymous users of the exchange. From their risk disclosure:
Trading the Futures exposes you to credit risk. This is the risk that one or more of your counterparties have deposited insufficient Collateral into their Account(s) such that you may not receive some or all the Digital Asset they owe you
So this exchange lets you place a trade, but even if you win, the counterparty might not pay you! This, coupled with their ludicrous 100x leverage, is a recipe for disaster.
Trading the Futures exposes you to credit risk. This is the risk that one or more of your counterparties have deposited insufficient Collateral into their Account(s) such that you may not receive some or all the Digital Asset they owe you
So this exchange lets you place a trade, but even if you win, the counterparty might not pay you! This, coupled with their ludicrous 100x leverage, is a recipe for disaster.