[anonymoushn]

My fund was also a market maker at FTX. We signed two contracts that modified the typical agreement with the venue. One of them stipulated that we had less access to leverage than normal (i.e. we could be liquidated earlier than we otherwise would be, but these terms were vague and apparently never had any effect) and enabled parallel risk checks on our account. The other was a line of credit from the venue which would allow us not to be liquidated when we otherwise would be in exchange for interest when the LOC was preventing liquidation. Our actual use of the LOC was entirely as collateral for open orders, so we never paid any interest on it.

It is not normal to allow market makers to take on arbitrarily large risk or arbitrarily large negative balances.