Thank you for blog post!
There is definitely confusion around this topic so I want to walk through the first two of your clarifications:
1. Initial Margin is 3x the value of the BitAsset created
Here margin is used as in margin = collateral, 3x Collateral. Check. no problems here.
2. Minimal Margin is 2x the value of the BitAsset createdWhen you used the word value I first read it as:
Collateral = 3 * short_price * short_qty (good)Margin call if Collateral / price < 2 * short_qty , which would be, call_price = 1.5x * short_price (this is wrong)Your language is correct if you read it as:
collateral = 3 * short_price * short_qty .
call price = 2 *short_price. ( Margin call if Collateral / price < 1.5x * short_qty) ( this is correct)
However, I think the language could be improved a bit to clearly indicate what the word "margin" is referring to, specifically the collateral or the price.
If other people read it the way I read I think the minimum value is 1.5x the value. Initially the collateral represents 300% the asset value, when that backing collateral drops to 150% of the asset value it will be a margin call. This is the most natural way to explain it as it compares directly to fractional reserve banking which has 5% backing or something like that.
On the other hand, i've been looking at this so long I may be going cross eyed.... %-)