The attack doesn't seem that realistic though, as it relies on someone going long on BTS and then attacking the BTS price.

1) a buy a bunch of BTS, then a bunch of bitCNY. In a properly functioning market, I paid a premium for bitCNY because 1 bitCNY is supposed to be > 1 CNY.
2) I request a forced settlement (losing the premium I paid).
3) I wait 23 hours and sell all the BTS I bought (which incurs a loss as I drive down the market)
4) my forced settlement goes through, and I get a lot of BTS because of my attack. But those BTS are now worth less than what I paid for them in order to get the CNY in the first place.

In the end: I paid a premium to buy CNY, which I lost. I sold a lot of BTS for less money than I paid for them. I force settled my CNY for more BTS than the CNY was originally worth (as long as I can overcome the premium I paid). Now I have BTS, which are not worth very much since I drove down the price and I overpaid for CNY in the first place.

this attack should been compare with a base,
actually ,everyone  can buy a big volume of BTS on btc38.com , make the price of bts increase , then sell his BTS,  and get profit .
it is more easy than by settlement .
 

yes, they know the risk, so they don't short.
I would like to know which guy know the risk before they short.
and I want to ask the people who support settlement,
how much have you short, how much will you short, how much will you sell 1bitCNY for CNY.

have force settlement  bitcny/cny >=1
without force settlement  bitcny/cny<=1

sorry totally can't catch your logic

Quote from: BTSdac on November 30, 2015, 02:31:11 am

Quote from: alt on November 30, 2015, 12:05:00 am

the key is a bitCNY holder can buy any volume at the same price.
imagine bitCNY can peg at rate 1:1 now
1. somebody collect 200K bitCNY first
2. ask for settlement
3. after about 22 hours, before the settlement be executed, he sell 200K CNY at BTC38, maniuplate the price down
4. waitting the settlement execute

if exchange like BTC38 do this, it's more easy.
shorters will found, they always be sold at a low price
it's not because they are unlucky, it's because the stupid rule.
this will loop again and again, until all bitCNY short position be settlement and no more stupid shorter continue the game.

1.I disagree that it is stupid rule; the propose of  force settlement is to make bitcny:cny >=1, 
2. the settlement execute in 22 hours as you said,   eg. the current price is  2.5 cny/bts , you settle force use bitcny at 2.5bitcny/bts, but if the price in btc38.com decrease to 2 cny in 22 hours.
2.5 bitcny/bts is the low price ?   I think the settlement is "buy any volume at the same price in periods of 22 hours
in btc38.com , we cannot buy any volume at the same price. and settlement of bitcny execute in 22 hours , it is similar.

same as clayop said

I think it's difficult to be happened. The manipulator should take risks that other market participants do not allow decreasing BTS price or etc.

but ,if there is no force settlement ,
1. use 1000W bts  borrow a lot of  bitcny,
2. change bitcny to cny   if there are someone want to change , 
3.use cny buy BTS,  make BTS price increase ,
4.use the BTS borrow bitcny  , and repeat the process
just need to use the cny borrow to buy bts make bts price increase . they can repeat this process unceasingly. if the price is not down to call price

compare with two methods  , what is needed  and difficulty levels

                                 force settlement                            without force settlement
Control price                       yes                                                  yes           (easy, there are cny from borrow)
Need bitcny                         yes                                                 no
Need BTS                             no                                                  yes
Need CNY                            yes                                                  no

I  think if there is on force-settlement , it would make more problem.

so  I think it is better to keep force settlement, but change rule as follow 
settlement price is the price in 24 hours (settlement execute  )  ,

3. after about 22 hours, before the settlement be executed, he sell 200K CNY at BTC38, maniuplate the price down

    I think you said "sell 200KCNY at BTC38" mean use 200K CNY buy BTS at BTC38? , if so !  shorters will found, they always be sold at a fit price?

the key is a bitCNY holder can buy any volume at the same price.
imagine bitCNY can peg at rate 1:1 now
1. somebody collect 200K bitCNY first
2. ask for settlement
3. after about 22 hours, before the settlement be executed, he sell 200K CNY at BTC38, maniuplate the price down
4. waitting the settlement execute

if exchange like BTC38 do this, it's more easy.
shorters will found, they always be sold at a low price
it's not because they are unlucky, it's because the stupid rule.
this will loop again and again, until all bitCNY short position be settlement and no more stupid shorter continue the game.

1.I disagree that it is stupid rule; the propose of  force settlement is to make bitcny:cny >=1, 
2. the settlement execute in 24 hours as you said,   eg. the current price is  2.5 cny/bts , you settle force use bitcny at 2.5bitcny/bts, but if the price in btc38.com decrease to 2 cny in 24 hours.
2.5 bitcny/bts is the low price ?   I think the settlement is "buy any volume at the same price in periods of 24 hours
in btc38.com , we cannot buy any volume at the same price. and settlement of bitcny execute in 24 hours , it is similar.
 

由于我没有进行实际操作，只是从理论上说明，如果有不对的希望大家指出来。
强制清算 是BTA2.0刚被提出来时候就引入的一个功能，最近加入GUI后引起了不小的恐慌，究竟强制清算有多大的风险
首先强制清算是什么？
简单的说就是，BTA持有者可以在任何时候以清算价格(喂价）将BTA转换为BTS，我刚打开GUI看了一下 bitcny的清算价格是2.08分，和时代价格绑的还蛮准的；清算谁的BTS？当然是清算抵押BTS借出BTA者的BTS了， 按照抵押率由低到高清算
比如我用 100W BTS 在 2分5的时候以2.5倍抵押借出来10000bitcny， 并且持有这10000bitcny
情况一：如果BTS 价格跌到2分的时候，正好我抵押的BTS被清算了，那么只会返回我50WBTS， 但是 我持有的10000bitcny值50WBTS，我的总价值还是100WBTS
情况二：如果价格涨到5分的时候，正好的抵押被强制清算了，那么会返回我75WBTS，但我持有10000bitcny只值25WBTS，我的总价值还是100WBTS

所以无论价格涨跌，还是我是否被清算 对于抵押 并且持有借出的BITCNY者来说，没有任何风险。
那是不是对于承兑商上来说就没有风险呢 ？
承兑商，如果并没有持有BITCNY而是持有CNY
同样是情况一，返回50WBTS, 但持有的cny 在市场上 并不可以以2分的价格买入全部BTS，因为有可能市场上没有 2分的卖单。 这就是承兑商的风险
实际上说，BITCNY 可以在一个固定的价格买入（这里的强制清算等同于买入）BTS，而CNY并不能以一个固定的价格买入大量BTS，因为买入的过程会导致BTS价格上升。（这也是以前大摩哥们发现的问题）
这个做的目的是让BITCNY:CNY>=1
后来BM做了一个更改去避免这个问题，也就是
清算是发起24小时后生效，那么24小时实际上类似于在市场上用CNY买入BTS的缓冲期。
情况三：我用 100W BTS 在 2分5的时候以2.5倍抵押借出来10000bitcny， 并且10000bitcny 买入BTS，
这个情况相当于于我以1.5倍杠杆做多BTS，
如果BTS涨了，我多赚50%，如果BTS跌了我多亏50%。

the root reason is
use cny buy bts on exchange , people cannot buy a big amount of BTS at a same price , because the process of buy would make price increase
but use bitcny force settle bts can settle his all bitcny to BTS at settle price.
 actually in the world , there is no bank , can convert all cny.   it mean if all people withdraw all their cny from bank ,  this bank must close, and in reality never all people want to withdraw their cny at same time, so bank just need to 10-20% cny stored in center bank to case withdraw,
So to solve this problem ,there are two direction
1.limit total force settle percentage
2.reduce radio of force settle .

very good thing 

Working on the backup/coldstorage/security aspects now

edit: seems that coldstorage infrastructure needs some more time ...

can brain key consider as a cold-storage way ?