Author Topic: Changes to Cover Rules - Eliminate 5% fee  (Read 6796 times)

0 Members and 1 Guest are viewing this topic.

Offline Bitcoinfan

  • Sr. Member
  • ****
  • Posts: 240
    • View Profile


I presume this also removes the +5% given to Bitasset holders?

Offline bytemaster

We are adding an operation that will allow you to cover a short position using the collateral at any time.  We are doing this by giving the user the ability to set the "call price" to anything higher than the "minimum call price".   This feature makes it trivial to bypass the 5% fee by slightly increasing your call price, so this makes the 5% fee impossible to enforce.

In reality the 5% fee merely served to create a variable amount of additional collateral depending upon the risk tolerance of each individual shorter.  Considering we are raising the min collateral requirement from 1.5 to 2x the added benefit of the 5% fee is insignificant.  The fear of a short squeeze and being forced to buy at up to 10% above the feed if there are not enough orders at the feed means there is still plenty of incentive to avoid forced buying.

If you set your call price at or above the price feed then your order will be matched against any and all bids up to 10% above the feed.   So be careful or you might just walk the book. 

Overall this will simplify the explanation of BitShares and shorts and remove uncertainty over how shorts and fees will be calculated.   

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.