risk management

The Hong Kong Financial Services and the Treasury Bureau will issue the second policy declaration on the development of virtual assets

ChainCatcher news, according to Yahoo Finance, the Secretary for Financial Services and the Treasury, Christopher Hui, stated that in response to the latest developments in the virtual asset market, the Treasury will publish a second policy declaration on the development of virtual assets, outlining the vision and direction for the next steps. This policy declaration will explore how to combine the advantages of traditional financial services with technological innovations in the virtual asset sector, and enhance the security and flexibility of real economic activities. It will also encourage local and international enterprises to explore innovations and applications of virtual asset technology.Christopher Hui pointed out that the Securities and Futures Commission is considering introducing virtual asset derivatives trading for professional investors, emphasizing that robust risk management measures will be formulated. This is expected to further enrich the product options in the Hong Kong market while ensuring that trading is conducted in an orderly, transparent, and secure manner. In assisting fintech companies to expand their business, the Invest Hong Kong is actively collaborating with industry stakeholders to promote in the Guangdong-Hong Kong-Macao Greater Bay Area, helping Hong Kong fintech companies further expand into the mainland market.

Hyperliquid optimizes risk management mechanisms and compensates JELLY long users

ChainCatcher message, according to Hyperliquid's announcement, due to the abnormal trading event in the JELLY market, users holding long positions in JELLY will be compensated at a price of 0.037555 upon settlement. This compensation benefits all JELLY traders except for the marked addresses. Event review:A trader self-executed a JELLY position worth 4 million USDC at a price of 0.0095.Subsequently, the JELLY price rose more than 4 times, triggering HLP to buy back and liquidate the position, resulting in a loss of value for the HLP account.Although the 4 million USDC position did not exceed the dynamic open interest (OI) limit, it failed to prevent further opening of positions after triggering the automatic limit.The key issue was that after HLP took over the position, it shared collateral with other strategy components, which did not trigger automatic deleveraging (ADL).Hyperliquid has strengthened risk management, including:HLP Liquidator Management: Setting stricter account value limits, reducing rebalancing frequency, and introducing more complex buyback liquidation logic. If the Liquidator's losses exceed the threshold, it will trigger ADL instead of automatically using collateral from other components.Dynamic Adjustment of OI Limits: The open interest limit will be dynamically adjusted based on market capitalization.Asset Delisting Mechanism: Validators will vote on-chain to delist assets that fall below the threshold.Hyperliquid is committed to continuously optimizing the system and enhancing risk prevention capabilities.
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