Hi there, thank you for your patience!
We have received feedback from the community over the way losses were handled in Epoch 3, and we listened. Although the calculations were laid out in our T&Cs, we understand how some of our members would feel aggrieved by the outcome.
After conducting an in-depth analysis, we have agreed to implement, retroactively, a fairer way for the losses to be distributed. This would mean lower losses for most of the users who submitted withdrawal requests during Epoch 3. We will also open up an additional period for these users to withdraw any remaining tokens from their initial deposit.
This additional withdrawal period will be announced on 25 April 2023, once we finalize the backend upgrading.
Epoch 3 Stats:
Maker LP Status
Individual Loss: 7.86%
AI Bot Status
Individual Loss: 5.49%
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We have also made the following changes moving forward.
At Present:
The current market practice for many Liquidity Pools involves converting losses into “debts”. Only users who submit withdrawal requests for that epoch will share the cost of these “debts”.
This mechanism allows the pool to “rebalance/restabilize” itself, thus penalizing those requesting withdrawals if the pool suffers from any losses.
This calculation works the same way for wins and profits. Code as below:
New Proposed Improvement:
To ensure a fairer and improved system for all, MarginX will be implementing a different practice for Epoch 4 and beyond. Any loss (or debt) will be proportionally borne by each individual wallet address in the pool, instead of penalising only those who submit withdrawal requests. Likewise, for profits.
Thank you once again for your patience and support.
We believe this is the right and fair thing to do, and we will continue working to create better products for the community!