Okcoin, BTC insurance fund and socialized losses is not sustainable.
I think most of you are aware of the new changes to socialized losses on btc futures at Okcoin. If so, skip ahead. In summary, they are going to stop adding insurance funds. This is used as a safety net for margin called losses that aren't filled. As of today, the weekly insurance fund is at 17BTC with last week’s loss totaling more than 150+BTC.
Futures market consist of commercial hedgers and speculators. One party is hedging to avoid risk while the other party takes on risk to make money. If insurance fund is depleted, hedgers will flee because socialized losses will eat into their winnings so they can no longer achieve a delta neutral position. I would like to bring this up as a warning that futures market at your exchange will experience turmoil in the near futures if we proceed the way we are today.
While it is up to okcoin to come up with a solution, I suggest having better risk management such as better margin call system that is based on volatility. In addition, have a minimum margin requirement user must maintain for each contract.