Dear pro.BTCC.com,
Since several days, the funding rate is frozen in the opposite direction of what it should be now.
We must avoid this market being so far from the real prices making the situation gradually increasingly bad for LONG order.
1.
Please fix the interest rate soon.
(why isnt it set according to a formular any more like
https://pro.btcc.com/faq "How do carrying fees work on Pro Exchange?")
2.
Please also correct in retrospective for the last days:
Refund the funding deductions on Long positions (bitcoin buyers) and credit those that would have applied otherwise
(and check if the price and/or the charges caused any liquidations that would otherwise not have happened)
Introduction/Context:https://pro.btcc.com/trade/xbtcny allows trading bitcoin contracts (with high leverage)
In volatile times such a market must be well hedged, either through the market provider
- or through incentivizing users and the public to balance the market themselves.
When Price is too high ('premium') => positive interest rate => sufficient incentive for more sellers to decrease the price
and when price Discounted price => negative interest rate => sufficient incentive for more buyers to increase the price
(This explains the radical changes/swings in interest at Bitmex, for example
https://www.bitmex.com/app/index/.XBTUSDPI8H Bitmex is not yet officially hedged but still the rates keep the price correct most of the time. )
pro.BTCC.com seemed to balance the market / incentivize similarly
- until recently when the interest rate just froze,
charging buyers despite the now the prices are only getting lower.