A lesson from the $ 80m+ of liquidations on SKHYNIX perps today: Keep
@selenagomez on your mind when you go to trade these RWA Perps.
Perpetual users aren't in the underlying market, betting in the official "casino".
They're the people standing around the blackjack table, betting with each other on what might happen at the table.
TradeXYZ and other Perp venues go up to them, and offer to referee PvP bets.. for a fee of course.
And as referees they can decide separately from the casino on different rules for the bets, and how to handle all the edge cases.
If they want people to keep betting with them, these fee charging referees have to try and handle them gracefully otherwise people will find a different place to bet.
So while edge cases get ironed out and Perp specifications of each contract shows itself over time to be Lindy, it is the Wild West and liquidation wicks like today will happen.
As with prediction markets, there can be a difference between being right and getting paid.
"Did Zelensky wear a suit?"
..."Was the SK Hynix pre-open a real price?"
The key part of Perps design is how liquidations are handled.
Even if Longs are collateralized 1:1, shorts will always have a liquidation point so there is no way to avoid this part of the puzzle.
Over time, refinements happen. Today's SKHYNIX event will make tomorrow's contract better.
Long Term, RWA perps are some of the most exciting instruments in Finance, and as they get refined they will eventually have the robustness needed to drive global price discovery.
Short term...
Whenever you're about to trade a new RWA Perp, remember you aren't Selena Gomez at the blackjack table. You're in the crowd.
And if the Perp specifications have only been recently implemented, and the underlying is more exotic than a simple MAG7 stock.. well you are actually standing wayyy the hell back in the crowd.