The LA Contract Trading on gate.io Exchange recently experienced a dramatic price volatility, quickly drawing market attention.
Gate.io platform's Chief Business Officer (CBO) Kevin Lee has responded, explaining that the core cause of this volatility stems from "abnormal contract index source data" and the "superimposed effect of platform risk control automatic mechanism", and explicitly denied any internal manipulation or intentional triggering of "single point liquidation".
Compensation Plan
Gate.io Kevin further elaborated on the compensation mechanism, which will fully compensate users who experienced "liquidation" in the contract market. As follows:
We have allowed all users to retain their profits, while 100% covering the losses of all liquidated users, ensuring that no user's account will have a negative balance, with the total amount exceeding 3 million USDT. We believe this is not just a responsibility, but a basic commitment to the community.
To ensure such situations do not recur, we will upgrade subsequent preventive mechanisms on our product, conducting more stringent reviews of contract index qualifications, including liquidity factors.
