Trade.xyz announced an extraordinary settlement of the Hercules contract in full and accelerated the reform of the pricing mechanism

On 29 July, according to information received, Trade.xyz issued a communiqué in response to the Hercules contract plug-in: on 27 July, at 23:01 UTC, the price of the SK Hercules tokens dropped sharply from $1,127.9 to $917.25, triggering a large number of multiple warehouse positions for forced liquidation. The price originated from a de facto deal seized by a number of independent data providers, the main front market in Korea. Its predictive machine system operates according to established specifications, tracking prices simultaneously from external exchanges and “design-based” at the technical level. However, the Platform recognizes that users are dissatisfied with the liquidation that was triggered and emphasizes that “market integrity is the core value of Trade.xyz”. To this end, Trade.xyz decided to cover, in a one-time, discretionary manner, all liquidation losses resulting from the abnormal price, with specific eligibility requirements to be published and payment expected within days, but made it clear that the decision “does not constitute a guarantee of a similar situation in the future”. At the institutional level, the Platform will accelerate the review of pricing modalities, including re-evaluation of the reliance on off-site assumptions, and give its own order book prices a higher weight (with a significantly higher order book depth and signal intensity relative to external sources) to deal more effectively with tailing events。