Gate to Cover Losses for About 200 BEN Contract Accounts
A naming error in a dividend-related funding-fee calculation triggered liquidations involving about $2.59 million in positions.
Gate will cover losses for about 200 accounts after a naming error in a dividend-related funding-fee calculation affected its BEN perpetual contract, the exchange said Sept. 30.
The issue occurred when Gate processed the BEN contract funding fee at about 4 a.m. ET (08:00 UTC), using a notice issued two days earlier. Gate said the error caused users’ displayed balances to fall and that the problem was identified and addressed within minutes.
The exchange said affected users would not bear the losses and that it would assume the full cost. Balance displays were being restored in stages.
About 4,221 positions across 889 contracts were liquidated around the time of the incident, involving a notional value of approximately $2.59 million. The calculation involved a planned dividend of $0.000585 per share for BEN stock and a $0.33 rate. Aliez Ren alleged that Gate applied the $0.33 stock-dividend rate to the BEN perpetual contract because the stock and contract shared the same name.
