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Main => General Discussion => Topic started by: abit on January 28, 2018, 11:51:24 pm

Title: How about removing a protection for undercollateralized short positions?
Post by: abit on January 28, 2018, 11:51:24 pm
Check https://wallet.bitshares.org/#/market/CNY_BTS for example.
(https://user-images.githubusercontent.com/12114550/35486326-ff3faed0-046c-11e8-9442-4d00248bb78d.png)
(https://user-images.githubusercontent.com/12114550/35486318-d48c4cb6-046c-11e8-938c-1ec6b2eec995.png)

As of writing, there is one bitCNY short position whose collateral ratio is below 175%. However, because there are asks (selling CNY for BTS) with price (x BTS per CNY) lower than the feed price (named "settlement" on the screenshot), according to current rule, the short position is not margin called, instead, it shows a yellow price which is much higher than market price hanging on the order book, but unable to fill. I believe many people have been confused by this. I don't know what's the original intention of this rule, likely a bug.

How about changing the rule to call the position regardless of the asks?

To be clear, there is another MSSR rule which is debatable as well, but in this post I'm not talking about it.
Title: Re: How about removing a protection for undercollateralized short positions?
Post by: abit on January 29, 2018, 09:47:27 am
Under current design, there is a way to manipulate the market in order to call the short positions at a higher price. The change will solve this.

I think the most possible issue of the change may bring is when the price feed is too far off, the short positions may be called unexpectedly. However, in this case, for the short positions, it's still better to be called earlier, rather than be called after someone ate up all the asks which will force the call at a much higher price.
Title: Re: How about removing a protection for undercollateralized short positions?
Post by: crypto4ever on January 29, 2018, 02:22:20 pm
according to current rule, the short position is not margin called, instead, it shows a yellow price which is much higher than market price hanging on the order book, but unable to fill. I believe many people have been confused by this. I don't know what's the original intention of this rule, likely a bug..

The person margin called has 24 hours to increase their collateral by design.

docs.bitshares.org/bitshares/user/dex-short.html

Quote
By giving 24 hours shorts have an opportunity to cover prior to any price manipulation by big players.

Title: Re: How about removing a protection for undercollateralized short positions?
Post by: abit on January 30, 2018, 11:18:02 am
according to current rule, the short position is not margin called, instead, it shows a yellow price which is much higher than market price hanging on the order book, but unable to fill. I believe many people have been confused by this. I don't know what's the original intention of this rule, likely a bug..

The person margin called has 24 hours to increase their collateral by design.

docs.bitshares.org/bitshares/user/dex-short.html

Quote
By giving 24 hours shorts have an opportunity to cover prior to any price manipulation by big players.
This is another rule, which is about force settlement.
I was talking about margin calls. You won't have any time if your collateral ratio is too low.
Title: Re: How about removing a protection for undercollateralized short positions?
Post by: JonnyB on February 03, 2018, 02:08:12 am
Just increase the MSSR.

I know you said its a separate issue