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Offline bytemaster

Short Rules for Wiki -> Please Update
« on: September 30, 2014, 09:28:05 PM »

Short orders can only get filled under these conditions:

1) There is someone willing to buy BitUSD at the price feed
2) AND Your short order is the highest collateral ratio order
3) AND Your price limit is lower than the feed  (BTSX per USD) or you didn't specify a price limit.
4) AND You have enough collateral to provide 2x backing at the trade price and quantity
5) OR Your price limit is higher than the feed (BTSX per USD) and someone is willing to buy at your price limit.

Short orders are forced to cover after 30 days by taking the best offers at the time.  No fee is charged.
Short orders are forced to cover when 75% of their collateral is required to cover, leaving the short with 25% of the collateral minus a 5% fee. 
The 5% fee is assessed as a percent of the collateral left over after covering.





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Offline Method-X

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Re: Short Rules for Wiki -> Please Update
« Reply #1 on: September 30, 2014, 09:32:39 PM »
 +5% +5% +5%

Offline xeroc

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Re: Short Rules for Wiki -> Please Update
« Reply #2 on: September 30, 2014, 09:36:59 PM »
http://www.reddit.com/r/BitShares/comments/2hxhgk/rules_shorting_bitassets_in_short/

I'd like to add this to the wiki, but I am afraid my understanding of the economics is not sufficient at this stage .. but I am sure some smart guys around can help out here :)

@BM: Much appreciated - Thx
+5%
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Offline tonyk

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Re: Short Rules for Wiki -> Please Update
« Reply #3 on: September 30, 2014, 09:53:19 PM »
http://www.reddit.com/r/BitShares/comments/2hxhgk/rules_shorting_bitassets_in_short/

I'd like to add this to the wiki, but I am afraid my understanding of the economics is not sufficient at this stage .. but I am sure some smart guys around can help out here :)

@BM: Much appreciated - Thx
+5%

Do not worry, just throw the following in the second or third line...

"Matched short orders are recorded in BTSX blockchain using 'elliptic curves' especially Secp256k1"

 and no one will dare to read what you have written after that !

Seriously...short orders are 4th grade math compared to that so it should work fine.
« Last Edit: September 30, 2014, 09:59:40 PM by dat peg doe »
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline xeroc

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Re: Short Rules for Wiki -> Please Update
« Reply #4 on: September 30, 2014, 10:09:15 PM »
Lol .. you made my day .. i will get started tomorrow and collect some related threads first. ...

If someone else were to already have written something during my night .. that would be also ok .. can iterate and contribute ..

Till then .. reading you tomorrow

//edit: need more time .. couldn't get started today :(
will have some time when in plane back to Germany for the weekend
« Last Edit: October 01, 2014, 06:52:35 PM by xeroc »
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Offline pariah99

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Re: Short Rules for Wiki -> Please Update
« Reply #5 on: October 02, 2014, 01:00:05 AM »
Are these conditions live in the current v0.4.18, or are they going to be added in the client?  I have an order that I believe which meets the conditions which is not executing.

Also, in order for you to be able to execute reasonably soon, wouldn't you need to put up at least 2x the price feed as collateral?  I ask because the GUI client currently puts the price feed (1x) as collateral when you click the feed price limit, implying that it won't execute until the price goes below half the price feed at time of order entry.  I don't think a lot of users realize that their orders are not executing because they don't meet the required collateral.

Also, not to be too pedantic, does the logic of the rules apply in the order that was spelled out by bytemaster?  i.e., if somebody had a sufficiently high collateral ratio but did not have the HIGHEST ratio, but they had a lower price limit, should that order execute?

Offline Method-X

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Re: Short Rules for Wiki -> Please Update
« Reply #6 on: October 02, 2014, 01:02:52 AM »
Are these conditions live in the current v0.4.18, or are they going to be added in the client?  I have an order that I believe which meets the conditions which is not executing.

Rules 1-5 are live but the rule about shorts being forced to cover after 30 days will be in 0.4.19

Offline pariah99

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Re: Short Rules for Wiki -> Please Update
« Reply #7 on: October 02, 2014, 01:16:04 AM »
I'm concerned that if the rules are applied in series, then somebody could potentially put in a short order for a very small amount of bitUSD with a ridiculously high collateral ratio and a similarly high price limit, and that would prevent all shorts from executing.

I tried two orders:

Initial conditions: The price feed is at 30.8290 BTSX/BitUSD, there is a buy order for 0.7009 BitUSD at a price of 30.2029BTSX/BitUSD, the lowest sell order is at 30.2777 BTSX/BitUSD

Order 1: I put in a short for 0.7009 BitUSD at a price limit of 30.2029BTSX/BitUSD with a collateral ratio of 75 BTSX/BitUSD (which was not the highest collateral ratio on the books).  It didn't execute.

Order 2: I put in the same order, but this time I made sure it had the highest collateral ratio.  It didn't execute either.

Offline bytemaster

Re: Short Rules for Wiki -> Please Update
« Reply #8 on: October 02, 2014, 03:26:08 AM »
Neither order will match because the buys are not at the feed price or above.
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.

Offline pariah99

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Re: Short Rules for Wiki -> Please Update
« Reply #9 on: October 02, 2014, 04:22:08 AM »
Sorry, I realized that I misread the first condition as being at the short price.  Makes perfect sense now.

Offline xeroc

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Re: Short Rules for Wiki -> Please Update
« Reply #10 on: October 03, 2014, 03:59:53 AM »
I just started writing some few lines into the wiki.
http://wiki.bitshares.org/index.php/Bitshares-x-Short

I will be offline for the weekend .. so you guys can take the freedom and continue on that ..
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Offline bytemaster

Re: Short Rules for Wiki -> Please Update
« Reply #11 on: October 03, 2014, 01:00:43 PM »
I just started writing some few lines into the wiki.
http://wiki.bitshares.org/index.php/Bitshares-x-Short

I will be offline for the weekend .. so you guys can take the freedom and continue on that ..

Great work.. there are many typos (probably from my own writing)... it would be great to have someone proof read it all.
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.

Offline xeroc

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Re: Short Rules for Wiki -> Please Update
« Reply #12 on: October 03, 2014, 03:12:35 PM »
Was typing most parts in a plane :) .. cannot do it until tuesday ..
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