So hear me out.
A couple of days ago I found this site where you can margin trade Chainlink. Seemed pretty nice so I opened a Long LINK 3.0x / DAI with a stop loss of 80%(!).
[One of the trades](https://i.redd.it/mp0pml0m4mv21.png)
Next day opened two more similar trades with but with much more collateral (**$1325**).
Not too much later BAM! **All three trades have hit stop loss**.
I’m like what??? I’m -$0.32 in loss that’s not even close to the 80% stop loss. Even worse my other two trades actually had gains (>0)!
So I hit up their telegram and talk to the lead dev @Sidsverma:
[ @Sidsverma (Telegram)](https://i.redd.it/76fj5zrk4mv21.png)
So basically he is saying there was a flash crash ‘across exchanges’. So I look at:
Coinmarketcap -> No crash
Binance -> No crash
Hubi -> No crash
So I ask him ‘What exchanges exactly?’ (as seen in the picture): NO RESPONSE.
But it gets even sketchier, 0.00222eth is approximately $0.34 but if we look at the graph in the first picture the price only goes up to $0.42! **Meaning that their own data doesn’t even display this drop.**
They claim to be [trustless](https://medium.com/nuo-news/consensys-backed-nuo-network-goes-live-on-mainnnet-with-wbtc-support-aee2c1eaa1fc) and transparent but when it comes to their price feed they are not gonna tell you anything!!!
***PLEASE SAFE YOURSELF TIME AND MONEY AND STAY THE HELL AWAY FROM*** [***NUO.NETWORK***](https://nuo.network/)***,*** ***COMPLETE SCAM!!***
*Some people find calling Nuo a scam is an overstatement. Here is why I called them a scam:*
*If you claim to be trustless and transparent, won’t answer tough questions about the price feed and most importantly won’t admit that this was a mistake I will call you a SCAM.*
*Please know that I contacted numerous people from the team to find a resolution before I went public with this.*
Yesterday I had another chat with the team yesterday, this is what Varun (co-founder) told me:
But when I asked about the where ‘flash crash’ exactly on Kyber occurred: **AGAIN NO RESPONSE**
Why? Because they take the price feed from Uniswap **OR** Kyber (not and). They liquidate the margin trade on the so-called ‘best price’ (although it’s the worst price for me). My order got liquidated around 30th April 13:27 (GMT+2 or CEST). If we look up the price on Kyber and take the **absolute lower bound** we find a price of **0.00286 ETH/LINK**.
However, my margin trade got liquidated on a price feed of **0.00222 ETH/LINK.**
**That is a decrease of 22.37%.**
I don’t understand how the Nuo team can defend this, this margin of error is simply unacceptable if you are offering a leveraged product.
**Secondly**, the Nuo team claims that they don’t profit from liquidating people…
Then please tell me where exactly the money is going, at least someone is profiting from this.
Look I wouldn’t have had an issue if Nuo had a warning on their website saying: *”Warning: We can’t ensure a max 5-10% divergence from the centralized aggregated price for users who margin trade Chainlink”*. However, users weren’t informed about this and therefore could expect reasonable behavior from your service. The calculated 22.37% from EDIT2 is simply way too high, even *by your own standards*.
Simply put, if you hold back critical information from your users while claiming to be transparent, that’s called **LYING** and I don’t see how that could be acceptable in this community.
You can’t just work your way out of here by ignoring me on telegram and saying you take the feedback seriously but can’t give me a refund because that would be ‘unfair’ to others. Take responsibility for your mistakes, correct them and move on.