BitShares Forum

Main => General Discussion => Topic started by: ElMato on December 11, 2014, 03:14:39 am

Title: What is the condition that triggers "rainy day" fund?
Post by: ElMato on December 11, 2014, 03:14:39 am
- Rainy day fund will be used in case we have uncollateralized bitAssets?
  What is the condition to trigger the use of those funds and what is the mechanic?
Title: Re: What is the condition that triggers "rainy day" fund?
Post by: bytemaster on December 11, 2014, 07:06:56 am
When ever a short is unable to cover the full amount the fund is tapped to cover the balance.   
Title: Re: What is the condition that triggers "rainy day" fund?
Post by: Markus on December 11, 2014, 08:09:50 am
Is that triggered when the collateral is used up entirely or at the moment the feed-price indicates collateral is insufficient to buy back the open bitasset-debt?

Does the fund buy at the feed or would it offer a premium or even execute a market buy order?
Title: Re: What is the condition that triggers "rainy day" fund?
Post by: bytemaster on December 11, 2014, 08:11:50 am
Is that triggered when the collateral is used up entirely or at the moment the feed-price indicates collateral is insufficient to buy back the open bitasset-debt?

Does the fund buy at the feed or would it offer a premium or even execute a market buy order?

The fund merely burns the BitUSD that was unable to be burned by the short.  The fund is in BitUSD so no market actions are required and the price feed is not relevant.  It is burned as part of the cover operation only when that cover operation does not have enough collateral.