January 28, 2023

Due to an error in calculating the index, Deribit contracts fell 15%

Due to an error in calculating the index, Deribit contracts fell 15%

Yesterday, October 31, the Bitcoin derivatives provider Deribit ran into functional issues, which affected BTC in the form of a drop in the value of a coin by 15%. Around the same time, Coinbase Pro was unavailable for about 75 minutes. Some attribute this to a crash on Deribit.

As the incident was discovered, Deribit had tosuspend all operations for a while. Then, the reason was published on the Telegram channel - “problems with calculating the BTC index caused by the platform’s inability to delete the incorrect data provided by one of the exchanges”. Although the platform did not disclose which exchange was the culprit, it promised to pay compensation to the affected customers. Deribit CEO Marius Jansen estimates a total compensation of $ 1.3 million.

We work for our traders. In this regard, we will indemnify traders who have suffered due to triggered stop orders and liquidations. According to current estimates, this will cost us at least $ 1,300,000. Of course, we do not take it from the insurance fund, Jansen said.

Coinbase is one of seven exchanges,used by Deribit to calculate the BTC price index. According to information published on the Deribit website, its BTC index averages the purchase and sale prices of these exchanges in order to calculate the average price for its trading platform.