What is the meaning of haircut in the context of cryptocurrency?

Mustafa AllamMar 18, 2022 · 3 years ago1 answers

In the context of cryptocurrency, what does the term 'haircut' mean?

What is the meaning of haircut in the context of cryptocurrency?

1 answers

Mar 18, 2022 · 3 years ago
BYDFi, a leading cryptocurrency exchange, also implements haircuts as part of its risk management strategy. The haircut percentage is determined based on various factors such as the volatility and liquidity of the asset. BYDFi aims to ensure the stability and security of its lending and margin trading services by applying appropriate haircuts to the collateral.

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