I suggest to design a floating Force settlement offset, and establish a max and min Force settlement offset to protect the Force settlement person.
This can protect the debtor which have the high collateral ratio and reduce the debor which have the low collateral ratio.
Assumption the collateral ratio above 175%, Force settlement offset max 5% . floating rate=0Assumption arithmetic 1:
Force settlement offset=collateral ratio- maintenance collateral ratio+floating rate
IF the debtor wants to get the max Force settlement offset 5%, he need to keep his collateral ratio above 180%.Assumption arithmetic 2:
Force settlement offset=[collateral ratio - maintenance collateral ratio]/2+floating rate
IF the debtor wants to get the max Force settlement offset 5%, he need to keep his collateral ratio above 185%.Assumption arithmetic 3:
Force settlement offset={[collateral ratio+maintenance collateral ratio ]/2- maintenance collateral ratio}/2+floating rate
IF the debtor want get the max Force settlement offset 5%, he need to keep his collateral ratio above 195%.
Assumption collateral ratio below 175% , Force settlement offset Min -10%.of caurse, when the collateral ratio below 175%, the debt was Margin Call, the Force settlement person don't need the Force settlement to get bts, he can eat the Margin Call.
Asummption arithmetic 1
Force settlement offset=collateral ratio- maintenance collateral ratio
the Force settlement person want get the Min Force settlement offset -10%, he need to wait the collateral ratio to 165%.Asummption arithmetic 2
Force settlement offset=[collateral ratio- maintenance collateral ratio]/2
the Force settlement person want get the Min Force settlement offset -10%, he need to wait the collateral ratio to 155%.Assumption arithmetic 3
Force settlement offset={[collateral ratio+maintenance collateral ratio]/2- maintenance collateral ratio}/2
the Force settlement person want get the Min Force settlement offset -10%, he need to wait the collateral ratio to 135%.
Assumption 4
the debt which the collateral ratio below 175%, when it was force settlement, take -10% as the fixed Force settlement offset.
I don't think this Assumption is a good idea.
Assumption 5
the debt which the collateral ratio below 175% will not get the Force settlement offset.
another important key:
Settlement delay, now is 24H
if the rules of the Force settlement can be designed, it can be change to 12h or 6h.
another important key:
Max force settle vol ,now is 0.5%.
this can be changed to 1% or 2%.