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How Is This Possible?

Started by armin, May 04, 2018, 04:30:14 AM

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Emma Lee

Protection in low-liquidity markets, interesting. So it's to prevent the shorts from selling at a really bad price?

armin

Ok this makes more sense, I'll have to read the BSIP to understand why this was the initial design

pc

Actually the reason is different (I assume, it isn't spelled out anywhere AFAIK).
The price of the best offer is outside the margin call territory. If the feed price was where the internal market is, the call wouldn't be margin called.
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armin

Quote from: xeroc on May 07, 2018, 08:23:46 AM
... However those margin calls are not executed because there are orders above the price feed .. It's a protection for short squeezes in low-liquid markets

This doesn't make sense lol, if there's bids above the price feed then executing the margin call is actually a good deal. How is it protecting against low-liquidity markets?

armin

Protection in low-liquidity markets, interesting. So it's to prevent the shorts from selling at a really bad price?

xeroc

... However those margin calls are not executed because there are orders above the price feed .. It's a protection for short squeezes in low-liquid markets

JonnyB

margin calls are punished with a bad price (feed - 10%) for not manually closing positions or maintaining collateral.
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armin

Figured it out, seems like is a bug and will be fixed next hard fork.

armin



The margin call price is lower than the highest bid, shouldn't it get filled automatically?