thanks radim98. The algorithm that the market maker bots is critically important to make sure they don’t lose all their money in such a situation. So when markets start moving in a straight line and the market makers are on the wrong side of it we may have to build in some kind of hedging mechanism that lets them offset their positions on other futures and spot markets.
Also, the market makers’ goal is to break even but that doesn’t mean that every trade they do will be a breakeven trade, in reality they will have lots of small profits which will then be wiped out by bigger losses when the market moves and so it might be normal that it happens every now and then.
We’ll be hiring an experienced High Frequency Trader to help us create and tweak the market maker algos because it is so important that the market makers dont go broke. But even if they did go broke it would simply mean that a large amount of DGTX had been won by other traders and this would likely lead to an increase in trading activity by those traders, but lets not plan on finding out if thats the case