I have read the Vega Whitepaper, and now I want to share with you 3 interesting things that I noticed:
I like that Vega is thinking about the equality of all in the financial system, and is looking for new ways to solve the problems of centralization:
"We have identified a clear and well defined opportunity to augment the decentralised financial system, taking it beyond cryptocurrencies, tokenised assets, and relatively slow general purpose smart contracts by adding a high performance financial products trading and execution layer. The platform we imagine would open the door to a fairer and more accessible financial system
that doesn’t favour some groups, nor exclude others".
3.5 Risk universes
Unforeseen and about the universy of risks, which the team interprets as follows:
A risk universe is a set of markets sharing the same risk model and risk parameters, to permit perfect netting of margin between markets beyond the partial netting achieved by coherent risk measures. This allows more efficient capital usage for margins in highly related product
sets, such as futures of different maturities in the same underlying asset.
8.3 Market closure
It is necessary to be ready for everything, even for the best outcome of events. The Vega team admits the possibility of a temporary market closure in order to avoid more serious problems, most often due to fraud:
In rare circumstances it may be preferable to close a market rather than allow it to continue trading. This may be the case if a market is later found to be fraudulent, if there is a failure or major disruption in an external price source, or for ethical reasons.