The design that FTX (Gary) had come up with solved the problem, in an elegant way. It monitored customers’ positions not by the day but by the second. The instant any customer’s trade went into the red, it was liquidated. This of course was unpleasant for the customers whose positions went into the red. But it promised to do away with socialized losses, which had plagued crypto exchanges from the beginning. The new exchange’s losses would never need to be socialized, because the exchange would never have losses.
