I understand what you're saying, and if it was only the money of traders at risks, we would have no issues. But we are also talking about the money of all the liquidity providers that would have disappeared in a blink of an eye (because the drop to 100 USD was only the beginning).
I know that liquidity swaps are not insured and CAN be lost, this is very clear in our TOS. However I do think that avoiding millions of dollars of losses for a few seconds of panic can be a good choice. We're not trying to play God, we're just trying to act in the best interest of all of our users, which is why, I repeat, if you think you had undue loss on shorts because of our halting, please write to us on
support@bitfinex.com (and be a bit patient).
We are not taking side for lenders, or for long traders, or anyone, we really try to act in the best interest of everyone.
Raphael
Bitfinex team
If you look at my posts, I target events, not people. The past can't be changed but we can learn from it where necessary and improve on the system for the better. I am providing feedback for your considerations to improve the system.
At where I stay, the interest rate per annum for deposits is even less than your swap rate per day. Why is this so? I attribute it to the risk attached for the premium. If protection of the liquidity swaps is justifiable, how do you justify the sky high swap rate?
There must be clear rules in the game. Players must understand the rules. Exchange owners must uphold them. With that, there will be no justification of crying fouls due to trading losses.
For your consideration.