February 22, 2024

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, Bitcoin derivatives provider Deribit encountered problems in functionality, which affectedBTC exchange rate in the form of a 15% drop in the value of the coin. Around the same time, Coinbase Pro was unavailable for about 75 minutes. Some people attribute this to a glitch on Deribit.

As the incident was identified, Deribit had totemporarily suspend all operations. Then the reason – was published on the Telegram channel. “problems with calculating the BTC index caused by the platform's inability to remove incorrect data provided by one of the exchanges”. Although the platform did not reveal which exchange was the culprit, it promised to compensate affected customers. Deribit CEO Marius Jansen estimated the total compensation at $1.3 million.

We work for our traders.In this regard, we will compensate traders who suffered due to triggered stop orders and liquidations. Current estimates are that it will cost us at least $1,300,000. Of course, we're not taking that out of 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.