Can bit20 be force settled yet?
When it launched it couldn't be has that changed.

I don't see how it can keep its peg unless you have the ability to force settle?

Hi Jonny, yes you can force settle! It has been changed and announced in this thread in February

Market settings changes

Hello dear traders and investors,

Bit20 has been evolving nicely since it's inception in December 2016. We are happy to observe that traders are buying and selling much higher than the "theoric" index price.

Why is that ?

Well, simply because they saw what Bit20 has performed very well in the last 18 months and deduce they can buy it even with a 50% premium, it's still a good investment with lots of potentials.

This market has been created with some very specific settings. These settings have been adjusted before the market was born.
Now that we have seen the price stabilising around 140% of the theoric asset price, we can adjust the market settings to fit better its trading environment.

2 changes:

The MSSR: When a shorter have its collateral falling below 175% of the price feed, a margin call will happen. A buy order will be automatically created in the market to buy back its undercollateralized asset(s).
This process guarantee that all smartcoins on the BitShares decentralised exchange are always well collateralised.

The MSSR is set at 110% at the moment. This would be good for gold or dollars because they are traded close to the price feed. No need then to buy back much higher.

In our Bit20 market, the asset is traded around 140% of the price feed. A buy back at 110% wouldn't be bought anytime soon. We will increase this value progressively until it reaches a value where it can be bought. It will be somewhere between 120% and 140%

What does it change for you concretely?

Really not much.

For the buyer, nothing at all.

For the shorter, you still can borrow BTWTY with the usual 175% collateral, the only difference is the price of the margin call if your collateral falls under the limit. If you are aware of what you do when you short BTWTY, that limit shouldn't be reached. If it is, the price you will be margin call will probably be around the one you sold and maybe cheaper, the spread is still wide. We won't raise this value until the point it is discouraging shorters, our goal is to incentive as many as possible!

Second change. After receiving some requests, we will enable the force settlement setting.
This option allows anyone with BTWTYs to force the market to buy the asset(s) they own at the price feed. The fact that this market is traded much higher than the theoric price feed make this option irrelevant because it's  easy to sell at a better price than the price feed. 

In order to let everyone consider this information, we will wait for 48h before operating any change.

Happy trading!

MarkoPaasila
If the price rises 300% per year on average, and you bought at 2 x feed price, you will need to wait approximately 8 months, and you can force settle your Bit20 to receive as much BTS as you once invested.
You can also put up a sell order at the same premium you paid. I'm sure someone will pick it up. I will buy it from you if you sell it at 1.5 x price feed.




I dont think your post is funny, this is a real issue, its not about what you would buy when get it cheap, DEX this is not a used car-dealership..this supposed to be a market where one invest and risk his hard earned money, I would rather go to poloniex and buy all 20 individually  and sell for market price, before I have to sell for much less because I need money or need cash to buy e.g. Dash, what about that idea?
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Quote from: MarkoPaasila on March 24, 2017, 12:49:34 pm

How much should I be ready to pay for Bit20 in terms of USD? What will the price be when markets are efficient and price discovery has happened? Do you expect it to continue trading above feed price?

if we dont have liquidity, I want bother to buy into, regardless the price, what good does it do, when price rise but you cant sell. get the liquidity in order and you will have a viable market, I promise
I own a few BIT20 but I do not even bother to look at it, why should I, can buy cant sell for some time to come, takes days or weeks ..there is not a market, its monopoly, just monopoly is over after a few hours, its sad, because I love the idea a lot

Quote from: karnal on April 03, 2017, 12:19:08 pm

Any thoughts on how to clear that silly 0.04 debt also welcomed .. i sold to some lucky souls slightly above the price feed, thinking that would erase the debt (yeah, no) .. as far as I can see there's only two options, buying more or shorting more.. the next order is 50%+ away from the settlement price and shorting more seems like an awful idea

To pay your debt you need BTWTY.

Quote from: yvv

The primary market is bit20 vs collateral asset, which is BTS. We need liquidity for this pair in order for MPA procedure to work.

ELI5 on why BTS was chosen instead of USD?

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- There is no vertical "Settlement Price" on any BTWTY market I bothered to check, except for :BTS ..  seeing as BTS is itself part of the basket, would it not make more sense for the primary (more advertised) markets to be USD and CNY ? And either way, the price feed should work for all of them.

The primary market is bit20 vs collateral asset, which is BTS. We need liquidity for this pair in order for MPA procedure to work.

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- The concept is cool, but here's something I've been having trouble understanding: Who in their right mind would short BITWY into existence? (well, I did, and now owe 0.04 due to a fundamental misunderstanding of the dex mechanics)

Those who seek for profit from price volatility are welcomed to short it.

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- Related to the above, and assuming one is in the camp that believes bit20 is headed for an extragalactic moon, why isn't everyone shorting USD and using it to buy BTWTY?

Because it is illiquid at present state.