Don't liquidate outside regular trading hours

I think the algorithm should be changed to not liquidate positions outside regular trading hours. The prices outside RTH are not reliable, are not indicative of the actual price, and can move with big swings, leading to undesirable liquidations (like the one described here.)

This would be consistent with Mirror’s own rule that you cannot open a new short position outside trading hours. It is also consistent with major real-time brokers with auto-liquidation such as Interactive Brokers.

The large liquidation buffer (50% for most stocks) is more than enough to cover any actual move overnight. After all, the stocks being trading on this platform are not penny stocks!

Any thoughts on this?

Not necessarily disagreeing with this idea, but I believe you can open new short positions in the extended hours sessions. Basically if the Oracle is “live” then mint/burn/liquidation are all live. If the oracle does not update for 1 minute, then it is considered “too old” and those functions are disabled.

“Prices are only considered valid for 60 seconds. If no new prices are published after the data has expired, Mirror will disable CDP operations (mint, burn, deposit, withdraw) until the price feed resumes.”

2 Likes

This is a real tough cookie. IMHO I would like extended hours to be on, that gives more time for people to open positions.

I understand extended trading hours has wild price fluctuation and a lot of exchanges already warn you not to trade during extended hours. But I prefer not to alienate other countries from participating in short positions. More usage the better. Besides, as a global platform, having other time zones adhere to US stock exchange time already sucks

On the other hand if say the price causes liquidation during extended hours. Can we like… don’t do that during extended hour trading? There are ways to achieve both objectives Im sure of it

100% agree. For mirror to succeed I’d like to see extended trading hours staying open. But maybe do not liquidate during these hours and wait till opening bell or some time delay for liquidation

In general liquidations need to be harder. I had a liquidation that I cant understand why it happened. And in addition there was an over 10% premium at the time of the liquidation. If you look at the details I paid way more than market price for my liquidations which is the bulk of the value I lost. At least liquidate me at market price.