bitBTC price

[jsidhu]

How come the price so differs from the real price? Should be almost 15000? but its on the 13000 boundary. I mean doesnt it defeat the point of having assets - they are supposed to tied up to the price of the real asset. + why isnt there a reserve fund in bitBTC

If I recall correctly the reserve fund builds up over time from bitBTC fees and is used in the event that extreme market volatility causes calls on short to have insufficient collateral to fully cover.

As for why the peg is off - That's above my pay grade.

There is no reserve fund accrual like that, it is used for interest to pay for long asset holders.

The insufficient collateral problem, is that not why 2x and not 1.1x or something is held in collateral?

[xeroc]

there is a reserve fund in EVERY market pegged asset  ... so also in bitBTC .. bitEUR, bitGLD, bitSLV ....

but NOT in user-issued assets .. such as FREE, BEER!

[serejandmyself]

How come the price so differs from the real price? Should be almost 15000? but its on the 13000 boundary. I mean doesnt it defeat the point of having assets - they are supposed to tied up to the price of the real asset. + why isnt there a reserve fund in bitBTC