Onchain derivatives platform Paradex has taken swift action to address a significant software error that led to unintended liquidations for approximately 200 users. The company has refunded a total of $650,000 to those affected, highlighting its commitment to user protection and network integrity. The source reports that this proactive approach aims to restore trust among its user base.
Incident Overview
The incident occurred during a scheduled 30-minute database upgrade on Monday, when a race condition resulted in corrupted market data being written on-chain. Paradex clarified that this issue was operational in nature and not due to any hacking or security breach, ensuring users that their funds were not compromised by malicious activity.
Response to the Error
In response to the error, Paradex temporarily disabled access to the platform, canceled all open orders except for take-profit and stop-loss orders, and executed a rollback of the chain to a snapshot taken prior to the maintenance. This rollback, described as an undesired but necessary measure, marked the first of its kind for Paradex Chain, aimed at safeguarding users and restoring the integrity of the network.
Preventive Measures
To prevent similar incidents in the future, Paradex has implemented several changes, including:
- updated service restart procedures
- enhanced data validation checks
These proactive measures are designed to bolster the platform's reliability and ensure a secure trading environment for its users.
During a recent outage, Paradex showcased its commitment to transparency and user support through effective communication strategies. This approach contrasts with the recent software error that affected users, highlighting the importance of maintaining trust. For more details, see communication efforts.
