Gregory Pudovsky
Printed: October 16, 2025 at 5:53 am Up to date: October 16, 2025 at 5:53 am
In Temporary
OKX’s danger administration system efficiently prevented large-scale cascade liquidations through the October 11 crypto market crash by robotically decreasing leverage and defending merchants’ positions.
Cryptocurrency trade OKX detailed how its danger safety mechanisms helped the platform keep away from large-scale cascade liquidations through the market crash on October 11. In keeping with the corporate, its built-in danger administration system robotically reduces leverage during times of excessive volatility when asset costs fluctuate sharply. This prevents margin calls and protects each consumers and sellers from pressured place liquidations.
OKX’s Chief Danger Officer, Yuri Mushkin, said that the trade’s danger engine structure acted immediately, safely decreasing credit score positions that fell beneath margin necessities.
“The danger administration mechanisms at OKX demonstrated their effectiveness throughout in the present day’s market crash, safely decreasing credit score positions that dropped beneath margin necessities,” Mushkin stated. “Throughout risky intervals, when correlations between belongings improve sharply as a consequence of value spikes, such methods should function instantly to scale back leverage and defend each consumers and sellers from margin defaults.”
He emphasised that danger administration infrastructure within the crypto trade is considerably extra complicated than in conventional finance, as customers can pledge a variety of digital belongings as collateral. To reduce the chance of cascade liquidations, OKX’s system differentiates danger profiles between tokens and stablecoins accepted as collateral.
Mushkin additionally famous that through the October market crash, a big USDe token depeg occurred, however OKX’s mechanisms had been in a position to comprise the impact and stop it from spreading to different markets.
Earlier, OKX founder and CEO Star Xu said that the trade’s world danger administration system “functioned flawlessly” through the crash. “The platform remained steady and easy throughout all areas — all methods operated usually,” he emphasised. Xu added that the median order execution time on OKX was three milliseconds.
On October 11, the cryptocurrency market skilled its largest crash in historical past. In keeping with CoinGlass, over $19 billion in positions had been liquidated in a single day, and whole market capitalization fell by almost $660 billion. In the course of the crash, some customers of main platforms, together with Binance, skilled value show errors and mass liquidations. Some critics imagine that a part of the market’s decline was exacerbated by vulnerabilities in Binance’s value oracle, which had been exploited by malicious actors.
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About The Creator
Gregory, a digital nomad hailing from Poland, isn’t solely a monetary analyst but additionally a invaluable contributor to numerous on-line magazines. With a wealth of expertise within the monetary trade, his insights and experience have earned him recognition in quite a few publications. Utilising his spare time successfully, Gregory is at present devoted to writing a e-book about cryptocurrency and blockchain.
Extra articles
Gregory, a digital nomad hailing from Poland, isn’t solely a monetary analyst but additionally a invaluable contributor to numerous on-line magazines. With a wealth of expertise within the monetary trade, his insights and experience have earned him recognition in quite a few publications. Utilising his spare time successfully, Gregory is at present devoted to writing a e-book about cryptocurrency and blockchain.
