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Offline ElMato

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What is the condition that triggers "rainy day" fund?
« on: December 11, 2014, 03:14:39 AM »

- Rainy day fund will be used in case we have uncollateralized bitAssets?
  What is the condition to trigger the use of those funds and what is the mechanic?

Offline bytemaster

Re: What is the condition that triggers "rainy day" fund?
« Reply #1 on: December 11, 2014, 07:06:56 AM »
When ever a short is unable to cover the full amount the fund is tapped to cover the balance.   
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Offline Markus

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Re: What is the condition that triggers "rainy day" fund?
« Reply #2 on: December 11, 2014, 08:09:50 AM »
Is that triggered when the collateral is used up entirely or at the moment the feed-price indicates collateral is insufficient to buy back the open bitasset-debt?

Does the fund buy at the feed or would it offer a premium or even execute a market buy order?

Offline bytemaster

Re: What is the condition that triggers "rainy day" fund?
« Reply #3 on: December 11, 2014, 08:11:50 AM »
Is that triggered when the collateral is used up entirely or at the moment the feed-price indicates collateral is insufficient to buy back the open bitasset-debt?

Does the fund buy at the feed or would it offer a premium or even execute a market buy order?

The fund merely burns the BitUSD that was unable to be burned by the short.  The fund is in BitUSD so no market actions are required and the price feed is not relevant.  It is burned as part of the cover operation only when that cover operation does not have enough collateral.
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

 

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