BitShares X Market Rules - DRAFT

[Ggozzo]

Will there be specifics direction on how to publish a price feed? Is it just a matter of getting API from bter or btc38?

[profitofthegods]

When someone shorts USD then a BitUSD is lent to them, right? But the idea is they do this to sell the USD for XTS and buy it back later, right? If so my only question is this: is the BitUSD paid to that person for them to sell on the market themselves or does the process involve it being automatically sold for them?

USD is lent/sold in one operation.

Oh good, that avoids having to worry about losses due to price fluctuations betwen opening the short and completing it by selling the USD. Very excited to have a play with this!

[bytemaster]

When someone shorts USD then a BitUSD is lent to them, right? But the idea is they do this to sell the USD for XTS and buy it back later, right? If so my only question is this: is the BitUSD paid to that person for them to sell on the market themselves or does the process involve it being automatically sold for them?

USD is lent/sold in one operation.

[HackFisher]

When someone shorts USD then a BitUSD is lent to them, right? But the idea is they do this to sell the USD for XTS and buy it back later, right? If so my only question is this: is the BitUSD paid to that person for them to sell on the market themselves or does the process involve it being automatically sold for them?

I think if that person need to hold the BitUSD for a while and sell on the market themselves. He can achieve this by placing short orders and ask orders the same time, you need to double collaterals to create BitUSD at current market price anyway.

[sfinder]

while BM was busy on setting up  Market Rules, we got the first business completed  in btsx .....

The first  international order for "Tampax tampons" was completed by using btsx on 08/08/14 between "BTS熊 "(china) and Germany provider "William" . this order includes 4 packs of  "Tampax tampons"/10 bag MERZ Mask / weleda shower Gel / Cream and is ready for shipping. "BTS熊 " is so excited for his order which was first time been completed in human-being's history  by using btsx. The total amount of this order is 7,119btsx. I guess it must be the most expensive "Tampax tampons" if we go back to read this post 2 years later. "BTS熊 "'s girlfriend must be the most happy woman in the world.



trade record screen shot

[profitofthegods]

When someone shorts USD then a BitUSD is lent to them, right? But the idea is they do this to sell the USD for XTS and buy it back later, right? If so my only question is this: is the BitUSD paid to that person for them to sell on the market themselves or does the process involve it being automatically sold for them?

[bytemaster]

The purpose of this thread is to discuss the market rules that we have implemented and their implications.

General Principle:  Everyone should get what they ask for and nothing more. 

For BitUSD there are 3 basic market operations:

Buy XTS with USD    - requires you to have USD and place a bid to receive XTS
Ask USD for XTS      - requires you to have XTS that you are attempting to sell for USD
Short USD with XTS  - requires you to have XTS and place a bid for XTS.   

When your Short bid is matched, the XTS from the SHORT and XTS from the ASK are placed into collateral for the creation of a COVER order for USD issued.

Before any Short orders may be entered 25 delegates must be publishing a price feed that is less than 24 hours old
All short bids must be less than 1.33x the median delegate price feed.

Before any orders execute the market must meet the following conditions:
   2 million XTS must be present in ASK orders
   2 million XTS must be present in SHORT orders
   This condition must also hold true AFTER all orders have matched.

When 3/4 of the collateral or more is required to buy back the USD owed on a COVER order, the market accepts the highest bids until all USD is paid back.  Best case 1/4 * 95% is returned to the owner of the COVER order and 1/4*5% is paid as fees to the network.   Worst case the XTS held as collateral is insufficient to buy back all the USD.

When a COVER order lacks sufficient XTS all trades stop until someone sells their USD at the cover price. 

No Margin Calls are executed at a price below .66 * the median delegate price feed.  Trades will continue but the cover will wait until the price feed falls.

While the BitAsset is boot-strapped with price feeds, it is envisioned that the price feed can be replaced with a 24 hour moving average.   

To cover a short position, you must first BUY USD on the market and then send it to your short position to free the collateral.

In the event that order matching results in your order balance being so small that when you multiply it by your order price you get 0, then your remaining balance "dust" is counted as fees charged.