Propr Risk Update: PARA Payout Incident
Summary
Propr announces a risk incident where roughly $68k was paid out over 48 hours due to activity in low-liquidity PARA-listed assets. All PARA assets are delisted, the address reported to authorities, and larger payouts will undergo manual review. Normal users are unaffected and the cost is covered by excess cash; financials are on the transparency dashboard.
For clarity on what happened:
A user took positions in low-liquidity assets listed by the PARA deployer, in a way that produced outsized PnL relative to the underlying market depth. Roughly $68k was paid out and withdrawn over the last 48 hours.
The relevant activity is visible onchain: hyperdash.com/address/0x57cffd2c927c3AbC9dC5148A2e10073484BdBDC7
This exposed a gap in our automated risk checks. We will continuously improve our risk system. In the interim, larger payouts will go through manual review.
All assets listed by PARA have now been delisted and the user/address has been reported to relevant authorities.
Normal users of the platform aren't impacted, the "exploit cost" is fully covered by our excess cash. Our real time financials are published on our transparency dashboard.
On the topic of liquidity management, I have covered this topic yesterday: https://x.com/louisregis/status/2090865577803800971?s=20
