Alameda lost tens of millions because of a fat fingering mistake
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Alameda lost tens of millions because of a fat fingering mistake
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Re: Alameda lost tens of millions because of a fat fingering mistake
#2So like ~0.5% of their total losses?
Re: Alameda lost tens of millions because of a fat fingering mistake
#3This happens in “proper” firms too
Re: Alameda lost tens of millions because of a fat fingering mistake
#4on a sensible exchange that attempted match would trigger a circuit breaker and either halt the market for a short period or put it into an auction
(and members that create orders to do that a lot either get their membership removed or pay fines)
Re: Alameda lost tens of millions because of a fat fingering mistake
#5"the utility we gained by moving fast outweighed the occasional costs we paid due to poor risk checks, hacks, and the like"
I think this may have potentially been true when everything was going up volume-wise, but as competition improves there's less margin for error.
Re: Alameda lost tens of millions because of a fat fingering mistake
#6It's wild to think that just one fat fingering mistake was responsible for the collapse of the whole FTX and Alameda ecosystem.
Re: Alameda lost tens of millions because of a fat fingering mistake
#7This happens in “proper” firms too
Case in point: https://en.wikipedia.org/wiki/Knight_Capital_Group
Re: Alameda lost tens of millions because of a fat fingering mistake
#8i don't recall this crash. must have been nanoseconds. I guess in hindsight that was the least of its problem. billions dollars missing makes ten million a drop in the bucket.
Re: Alameda lost tens of millions because of a fat fingering mistake
#9"the utility we gained by moving fast outweighed the occasional costs we paid due to poor risk checks, hacks, and the like" I think this may have potentially been true when everything was going up volume-wise, but as competition improves there's less margin for error.
it's not about the number of mistakes but the size of the mistake
Re: Alameda lost tens of millions because of a fat fingering mistake
#10> According to SBF, the utility we gained by moving fast outweighed the occasional costs we paid due to poor risk checks, hacks, and the like. This was SBF's work philosophy, and it drove the culture he created at Alameda and FTX.
Moving fast is great, but you need structure to support it. If you front load your development with guard rails that ensure you're always on track, then you "aim small, miss small" so to speak. If you do none of that and just hope that you can respond to problems as they arise then you've really not aimed at all and can potentially hit a target, but likely also hit a house.