The exchange will cover losses from a 19% pre-market drop in its SK Hynix perpetual futures contract triggered by a single trade.
Trade.xyz announced it will reimburse traders for $60 million in liquidations after its SK Hynix perpetual futures contract plunged 19% in a single pre-market trade on July 27. The mark price fell from $1,128 to $917 at 23:01 UTC, driven by an outsized trade on a thin Korean venue.
The exchange attributed the move to a real trade relayed by its oracle, which functioned as designed, rather than a system failure. The reimbursement is a one-time action with eligibility rules to be announced later.
Trade.xyz plans to adjust its price-sourcing methodology, prioritizing its own order books to mitigate future volatility. The incident highlights risks in crypto perpetuals, which can lead spot markets during thin trading conditions.