Backpack CEO: Take FTX as an example and prioritize building a transparent and robust risk control system to ensure the safety of user funds

Odaily News Backpack CEO Armani mentioned FTX and Alameda Research. Backpack took the FTX collapse as a lesson and prioritized building a robust and transparent risk management system to ensure the safety of user funds. Backpack does not operate its own market makers, has no motivation to liquidate users, and prioritizes fair liquidation on the order book (99.82% of liquidations are completed directly on the order book), allowing any market participant to participate in transactions fairly.

In addition, Armani also explained Backpack’s three-step liquidation process (order book liquidation, backup liquidity support, and automatic deleveraging), and reduced market shocks through measures such as gradual liquidation and price impact bands to protect users from unreasonable liquidations.