Explain How a Lack of Finality Could Lead to a ‘Margin Call’ Failure.
A margin call occurs when the collateral (margin) in a derivatives account falls below a required maintenance level, prompting the trader to deposit more funds. If the underlying blockchain lacks finality, the transaction used to deposit the additional margin could be reversed or invalidated by a chain re-organization.
This failure to secure the margin deposit could lead to the forced liquidation of the trader's position, even if they attempted to meet the call.