WTF! "societal risk management mechanism."

Evermore2017

Evermore2017

https://www.cnbc.com/2018/08/03/eno...coin-whale-leaves-its-counterparties-to-.html

Bitcoin whale makes ‘enormous’ losing bet so now other traders have to foot the bill
  • A trader on Hong Kong-based exchange OKEx made “an unusually large long position order" worth about $416 million, and was unable to cover the loss as bitcoin prices slumped last week.
  • Because the exchange's insurance fund couldn't cover it, other customers will have a portion of their earnings used to pay the bill.
  • The event shines a light on risks of trading cryptocurrency, even on the world’s biggest exchanges.
...
 
The problem with Bitcoin is there is no regulation at all! You have crooks, drug dealers, terrorists all able to transact their business! A big Bitcoin dealer was shutdown by the Federal Government and his Bitcoin confiscated over drug dealing using Bitcoin. They should have someone regulating Bitcoin to make sure everyone is on the up and up!
 
Evermore2017 said:
https://www.cnbc.com/2018/08/03/eno...coin-whale-leaves-its-counterparties-to-.html

Bitcoin whale makes ‘enormous’ losing bet so now other traders have to foot the bill
  • A trader on Hong Kong-based exchange OKEx made “an unusually large long position order" worth about $416 million, and was unable to cover the loss as bitcoin prices slumped last week.
  • Because the exchange's insurance fund couldn't cover it, other customers will have a portion of their earnings used to pay the bill.
  • The event shines a light on risks of trading cryptocurrency, even on the world’s biggest exchanges.
...
More...
I don't even get how they'd do this? Retroactive to customers who were customers when the loss happened, many of whom are long gone. To current customers, many of whom whom weren't even customers when the loss happened? Future customers, of whom there will be none?
 
On one hand, it sounds like this is a clause that would be disclosed at the time you're opening the account. A risk disclosure would make it a reasonable clause, in my book. On the other hand, I glanced at terms of service and could not find anything about it (link below). Sounds pretty shady to me (well, more so than the rest of the crypto which is already shady).

https://www.okcoin.com/pages/company/termsService.html
 
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