There are far fewer people who want to short in a platform with forced settlement than one with it. There are far fewer people who want to trade in a platform with more complex features than one that is easy to understand. Having one good Smartcoin design or a few can attract businesses and that will be a key to success.
do not agree.
the risk brought by force settlement will be finally reflected in the price of BitAssets. it is obvious now BitCNY's price rose about 1~2% than the time without force settlement.(as a result 1:1 peg lose and some merchant/customer leave, but this is another question) this price rise compensate the shorter's risk and actually the shorter still want to short if necessary.
as I know, many speculators like complex features, as they can study more and make profits if they understand the feature deeper than others.
so I believe force settlement will motivate speculators to trade more, the real question is: whether the 1:1 peg is necessary to attract merchant/customer.
I disagree with you. You'll have less people participate because they know that someone can manipulate the markets and use forced settlement against them. Those that do trade will less likely trade in the future the more often they are force settled. The only reason why forced settlement might increase transactions is because you can force transactions to happen, but overall less people will trade in the long run. The premium also makes it less likely for people to trade because it will be perceived to be less useful for consumers & merchants.
Speculators don't care for complex features unless it allows them to trade more efficiently (like having the ability for stop loss/stop limit orders etc.)
Sure if a certain group of users have the ability to take advantage of other newer traders they will like that in the short run, but in the long run there will be fewer traders who will continue to trade.
Oddly with your reasoning you think the complexity increases speculation. I think the opposite. Either way my overall point is that Smartcoin Designs do affect liquidity so even if you disagree with what specific designs are better than the other, it seems you agree that: Smartcoin Designs Do Affect Liquidity. It can improve it or make it worse.
If you want to keep forced settlement with bitCNY that's fine. I'd just like to have an alternate design mainly for bitUSD. I think it's incredibly important.