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Main => General Discussion => Topic started by: fractalnode on June 07, 2016, 05:17:36 pm

Title: What is the daily cost of the loan bitUSD ?
Post by: fractalnode on June 07, 2016, 05:17:36 pm
I do not see anywhere information about the cost of the loan bitUSD, bitCOINY on DEX. Can someone explain to me how it is?
Title: Re: What is the daily cost of the loan bitUSD ?
Post by: Chronos on June 07, 2016, 06:35:28 pm
There is no daily cost to bitUSD, which is a Bitshares SmartCoin. I don't know anything about bitCOINY.
Title: Re: What is the daily cost of the loan bitUSD ?
Post by: yvv on June 08, 2016, 12:44:05 am
There is no daily cost. You leave collateral in BTS tokens, take your bitUSD, convert them to real USD and go spend, take a vacation, play casino, hang up with chicks. Pay back your debt at your convenience. No interest. But, if the value of your BTS collateral falls due to volatility, your collateral will be sold at very bad price for you to force you to pay off your debt. Think of it as of overall cost of your loan.
Title: Re: What is the daily cost of the loan bitUSD ?
Post by: abit on June 09, 2016, 11:20:11 am
Quote from: yvv on June 08, 2016, 12:44:05 am
There is no daily cost. You leave collateral in BTS tokens, take your bitUSD, convert them to real USD and go spend, take a vacation, play casino, hang up with chicks. Pay back your debt at your convenience. No interest. But, if the value of your BTS collateral falls due to volatility, your collateral will be sold at very bad price for you to force you to pay off your debt. Think of it as of overall cost of your loan.
And don't forget force settlements.
Title: Re: What is the daily cost of the loan bitUSD ?
Post by: yvv on June 09, 2016, 03:37:18 pm
Quote from: abit on June 09, 2016, 11:20:11 am
Quote from: yvv on June 08, 2016, 12:44:05 am
There is no daily cost. You leave collateral in BTS tokens, take your bitUSD, convert them to real USD and go spend, take a vacation, play casino, hang up with chicks. Pay back your debt at your convenience. No interest. But, if the value of your BTS collateral falls due to volatility, your collateral will be sold at very bad price for you to force you to pay off your debt. Think of it as of overall cost of your loan.
And don't forget force settlements.
Yes, forced settlement is a punishment for issuer, but you need some way to terminate some smart coins when the price falls below peg.


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Title: Re: What is the daily cost of the loan bitUSD ?
Post by: xeroc on June 09, 2016, 04:42:24 pm
I don't get why people call settlement a punishment.
It exchanges the bitassets into BTS at the price feed.

It's only a punishment as the shorter has to update his call position to re-enter. At most this is a missed opportunity, but not a punishment.
Title: Re: What is the daily cost of the loan bitUSD ?
Post by: yvv on June 09, 2016, 05:03:38 pm
Quote from: xeroc on June 09, 2016, 04:42:24 pm
I don't get why people call settlement a punishment.
It exchanges the bitassets into BTS at the price feed.

It's only a punishment as the shorter has to update his call position to re-enter. At most this is a missed opportunity, but not a punishment.

Which price feed is that? Is it a price feed at time when forced settlement was initiated, or at time when it is settled?
Title: Re: What is the daily cost of the loan bitUSD ?
Post by: xeroc on June 09, 2016, 05:24:51 pm
Quote from: yvv on June 09, 2016, 05:03:38 pm
Quote from: xeroc on June 09, 2016, 04:42:24 pm
I don't get why people call settlement a punishment.
It exchanges the bitassets into BTS at the price feed.

It's only a punishment as the shorter has to update his call position to re-enter. At most this is a missed opportunity, but not a punishment.

Which price feed is that? Is it a price feed at time when forced settlement was initiated, or at time when it is settled?
When it is settled ..