[HN Gopher] Alameda Research's borrowing limit from FTX was $65,...
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       Alameda Research's borrowing limit from FTX was $65,355,999,994
        
       Author : aorist
       Score  : 45 points
       Date   : 2023-01-21 17:59 UTC (5 hours ago)
        
 (HTM) web link (restructuring.ra.kroll.com)
 (TXT) w3m dump (restructuring.ra.kroll.com)
        
       | hgsgm wrote:
       | Where is that number? I only see $65B
        
         | xyst wrote:
         | look at page 18 on the pdf, it shows a screenshot of
         | configuration which states the "borrow" property is set to
         | "65355999994"
        
         | kccqzy wrote:
         | The eighteenth page of the PDF.
        
       | jzymbaluk wrote:
       | 65 billion? That feels like an absurdly high number. The scale of
       | these companies are mind-boggling
        
         | [deleted]
        
         | kasey_junk wrote:
         | That's just a limit in their risk system not a judgement of any
         | real scale. Better to read it as "infinity" because the point
         | of the setting was to remove any real limit.
        
       | wolverine876 wrote:
       | [PDF]
        
       | Centigonal wrote:
       | hahahaha holy shit
       | 
       | https://news.ycombinator.com/item?id=34373113
        
         | Kranar wrote:
         | The author of that comment was incorrect though. Page 18 of the
         | PDF shows that it was an arbitrarily hardcoded number encoded
         | in a BigDecimal, has nothing to do with 16 bit integers.
         | Furthermore the limit was 65*3*55... whereas the max 16-bit
         | unsigned integer is 65*5*35, so the digits don't even match up.
         | 
         | It's a cool hypothesis, and perhaps the person who hardcoded
         | that number was even inspired by 2^16 - 1 in some way, but as
         | the replies point out it doesn't really make much sense beyond
         | an odd curiosity.
        
           | Centigonal wrote:
           | I didn't catch the 65355 vs. 65535 thing. That just raises
           | more questions...
        
       | anigbrowl wrote:
       | Bet he wishes he'd stuck with 32-bit unsigned integers
        
       | mr90210 wrote:
       | When your programmer is also a thief.
       | 
       | const FTX_LIMIT = Infinity;
        
       | jvans wrote:
       | Someone find the memo from sbf demanding a switch to 128 bit
       | longs
        
         | chedoku wrote:
         | He said sorry.
        
       | chedoku wrote:
       | Is it a screenshot from a smart contract? Why $65,355,999,994?
        
         | golem14 wrote:
         | maybe related to 2^16?
        
           | wolverine876 wrote:
           | C'mon, this is serious money; you're off by a couple orders
           | of magnitude: 2^36 =                 68,719,476,736
           | 
           | Which doesn't explain it. Maybe the subtracted $3 billion in
           | other debts? Got to watch every penny, you know.
        
             | epgui wrote:
             | That's actually the exact same order of magnitude, FYI.
        
               | mkl wrote:
               | 2^16 = 65536.
        
             | mrbungie wrote:
             | You're asumming the final number id managed by a sole
             | number. Maybe there a "size" value and a "quantity" value.
             | 
             | An example would be a float representing the final
             | magnitude over the base magnitude (i.e. thousands of
             | dollars), and the base quantity of thosands of dollars an
             | unsinged 16bit integer.
             | 
             | It would be a commonly considered weird approach (you
             | could/should use Decimal types for money), but hey, the
             | final number is strangely near to be such a typical number
             | (2^16).
             | 
             | PS: Like a sibling suggested, other hypothesis is that
             | maybe it was something akin to a bare napkin
             | calculation/decision made by humans (with human errors)
             | eventually digitalized.
        
             | Retric wrote:
             | It's really close to 2^16 * 1 million - 6$.
             | 
             | 65,535,999,994 vs $65,355,999,994
             | 
             | No idea where the -6$ comes from or if the 535 vs 355 was
             | intended.
        
           | oh_sigh wrote:
           | It is suspiciously close to 65536*1e6. Can't explain why it
           | is $6 short though
        
             | tromp wrote:
             | No; it's close to 65356e6, not 65536e6 (3rd decimal is 3
             | not 5). Could be misreporting though...
        
               | quickthrower2 wrote:
               | "If we are going down, lets nerd snipe while we do!"
        
       | dgrin91 wrote:
       | Does anyone know what the AWS environment mentioned here is? It
       | doesn't really make sense for it to be Amazon AWS, or am I just
       | overthinking it?
        
         | rockemsockem wrote:
         | Amazon AWS, the new ATM machine :)
        
         | fragmede wrote:
         | You're overthinking it and in fact AWS has a bunch of security
         | stuff (HSM, secure enclave, etc) that makes it extra
         | attractive. For reference, Stripe (which isn't FTX but it's
         | Fintech and handles large amounts of money) uses AWS for their
         | environment. If you're asking if there's some secret hidden AWS
         | region FTX was using, why would they bother? The known special
         | region, GovCloud, is a couple years behind the other regions in
         | features. Also from what's been publicly revealed, FTX isn't
         | exactly the shining example of the finest possible engineering.
         | 
         | https://aws.amazon.com/solutions/case-studies/stripe/
        
       | thinkingkong wrote:
       | I suspect that this limit was just the Max value of whatever
       | number format they were using was. The chances of it not really
       | being 65536 are fairly low. Its just too coincidental.
        
         | crazygringo wrote:
         | Except it's not 65536 -- it's 65356. (I just verified in the
         | PDF.)
         | 
         | Which actually makes me wonder if somebody fat-fingered it and
         | _meant_ to type 65536 by hand and _got it wrong_. Which given
         | everything we 've found out about the sloppiness there, would
         | seem quite apropos.
         | 
         | Normally I wouldn't think so, but the trailing "999994" also
         | just seems so strangely floating point-derived... but who even
         | knows.
        
           | kevin_thibedeau wrote:
           | 65536 requires 17-bits. So maybe they tried the one-too-large
           | number, failed, and assumed they transposed something.
        
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       (page generated 2023-01-21 23:02 UTC)