CoinVoice recently learned that on October 25, cryptocurrency options trading platform Deribit announced important adjustments to its margin model variables to cope with possible rapid price and volatility changes. These adjustments are designed to enhance the risk management framework and provide users with a greater protection buffer. The main changes include:
1. The price band set for Portfolio users will increase from 15% to 17.5% at 9 AM UTC on October 27, and further increase to 20% on October 30. 2. The volatility band will increase by 5% daily, from 45% to 60%. 3. The Vega thresholds for all users will be adjusted. 4. Futures leverage for Standard Margin users will be reduced from 50x to 25x.
Deribit said they believe these adjustments will help create a safer trading environment and protect the market and its customers in more extreme market conditions. [Original link]