You have a few major plot holes. You aren't leveraged on strike loans, quite the opposite, they are requiring 50% collateral. While a 50% flash event is possible, it is incredibly unlikely to happen.
Even if it hits 45% down, there is no liquidation happening at all.
You are free to pay your loan back at any time, regardless of the Bitcoin price.
Replies (5)
50% dips are regular for BTC. Granted it's just for a day or so - enough to liquidate your positions.
They are defining the spread. The price is the bid/ask on their app, so it's whatever they want for a few seconds.
Long term they can't manipulate. But for an hour, they can literally lock out buyers.
No, they can't. If they did on scale, they would be ftx or blockfi or any other scammer company.
The game theory isn't in there.
There is no benefit to a company doing this against their users.
That is completely false. Covid was the largest daily drop in history, at just under 40%.
You can cover you spread in minutes, easily. And remember, even a 55% drop would liquidate just a fraction. It isn't leverage, it is collateral.
False. At 70% LTV you get margin called at 80% liquidation.
