in the new versionn 151125, a "SETTLE" button appear under the balance tab, as stated in the help, "Holders of any bitAsset can request a settlement at a fair price at any time. The settlement closes the borrow/short positions with lowest collateral ratio and sells the collateral for the settlement."
alt told me some more detail, "if anyone request settlement with asset A, one day later he can buy BTS from the asset shorter with the lowest collateral ratio with the latest settlement price. "
I am surprised to hear this, as a big BitCNY shorter, it seems this feature put me in danger.
Why we need this feature?
yes, maybe it can really raise the collateral ratio as a whole, because each shorter will run away from the lowest collateral ratio space. but does this really do good to the whole ecosystem, MPA supply will be lowered and more BTS will be unlocked for exchange.
shorters are always in danger, they always face the danger of margin call, this feature provide each user an opportunity to rob them.
and is this kind of rule reasonable? when one put his assets into collateral, anyone can buy these collateral with a so called "fair price", not because the collateral ratio meet the maintenance ratio, but because the collateral ratio is the lowest!
and currently the settlement fed by witness is often not the fair price. say the feed price for BitCNY/BTS is 0.0205, but are there anyone can sell me BTS at 0.0205 CNY? if yes, please let me know.
as a shorter I have been hurt by the unexpected rule change at 16th,OCT, now I worry whether I will be hurt once more.
please stop robbing the shorter.