{"id":262,"date":"2008-10-26T15:26:45","date_gmt":"2008-10-26T23:26:45","guid":{"rendered":"https:\/\/bayesianinvestor.com\/blog\/index.php\/2008\/10\/26\/automated-market-maker-problems\/"},"modified":"2015-10-14T14:48:56","modified_gmt":"2015-10-14T22:48:56","slug":"automated-market-maker-problems","status":"publish","type":"post","link":"https:\/\/bayesianinvestor.com\/blog\/index.php\/2008\/10\/26\/automated-market-maker-problems\/","title":{"rendered":"Automated Market Maker Problems"},"content":{"rendered":"<p>Last night an Intrade trader found and exploited a bug in my <a href=\"https:\/\/bayesianinvestor.com\/amm\/\">Automated Market Maker<\/a>, manipulating DEM.PRES-TROOPS.IRAQ until Intrade rejected one of the market maker&#8217;s orders for lack of credit and the software shut down.<br \/>\nThe bug involves handling of partial executions of orders, and doesn&#8217;t appear to be easily fixable (what happened looks nearly identical to the scenarios I had analyzed and thought I had guarded against).<br \/>\nFor the moment, I&#8217;ve reduced the market maker&#8217;s order size to one contract, which will prevent further exploitation but provide much less liquidity.<br \/>\nI will try to fix the bug sometime in November and increase the order size (on the contracts that don&#8217;t get expired at election time) by as much as I can without adding more money to the market maker&#8217;s account. I will also analyze the information provided by the markets shortly after the election.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last night an Intrade trader found and exploited a bug in my Automated Market Maker, manipulating DEM.PRES-TROOPS.IRAQ until Intrade rejected one of the market maker&#8217;s orders for lack of credit and the software shut down. The bug involves handling of partial executions of orders, and doesn&#8217;t appear to be easily fixable (what happened looks nearly [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[17],"tags":[151],"class_list":["post-262","post","type-post","status-publish","format-standard","hentry","category-if","tag-amm"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p80O1l-4e","_links":{"self":[{"href":"https:\/\/bayesianinvestor.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bayesianinvestor.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bayesianinvestor.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bayesianinvestor.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/bayesianinvestor.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=262"}],"version-history":[{"count":1,"href":"https:\/\/bayesianinvestor.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/262\/revisions"}],"predecessor-version":[{"id":610,"href":"https:\/\/bayesianinvestor.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/262\/revisions\/610"}],"wp:attachment":[{"href":"https:\/\/bayesianinvestor.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bayesianinvestor.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bayesianinvestor.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}