So, I received an email last night at 9:47, half way through the the mini-crash, saying my short position on Binance futures had been ADL called. Never heard of this before, but from reading the Binance FAQ it seems that someone (probably lots of people) on the other end of my short were liquidated when it went against them. They're bankrupt because they were over-leveraged, and i'm low on the ADL ranking, so my profit making position gets closed as well. Turns out it would have dropped another $500 and I would have made even more, but no, closed.What the hell? How does Binance even let this happen? How do I know it wont happen again, and my position 'deleveraged', seemingly just to stop me making a profit and them cover their asses? They have an insurance pot to cover things like this, but depending on your leverage and stake you're ranked. The lower the rank, more chance of getting called. I'm not the one running a billion dollar exchange, why the hell is it me that foots the risk when things go tits up for someone else?Seems that if you're going to run a futures contract, you should be prepared for this kind of thing, not just stop people out and barely apologise! Binance of ALL companies should know that crypto is volatile, that's why we trade it! Not happy.Posted this on r/Binance as well, but thought more eyes on the issue would be good. I'm interested if this happened to anyone else, and whether i'm just getting pissed off over something that happens a lot...
Submitted February 20, 2020 at 10:46PM
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