Sonic co-founder Andre Cronje said the derivatives platform FT FlyingTulip recorded about $50,000 in liquidations during its first experience of a large-scale market pullback. According to Odaily, Cronje attributed the result to an equity account lending model.
Cronje said FT uses net risk calculations rather than a discounted-collateral model, and that a soft liquidation mechanism took effect. He added that the average liquidation size per transaction ranged from $200 to $2,000.
Cronje said that if a traditional loan-to-value (LTV)-based lending system had been used, liquidations during the same market volatility could have been 10 to 20 times larger.
Andre Cronje Says FT FlyingTulip Saw About $50,000 in Liquidations During First Major Market Pullback
2026-06-06 12:23:56
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