How to cover questions...Back to basics...

[svk]

account overview page ..
there is a button next to your debt position that states "CLOSE POSTITION"

last time I checked when I press "close position" i get an error message saying that the position can't be closed since I don't own the bitasset. Hence I have to buy first the bitasset from the order book which have orders with huge premiums most of the times. So in effect close position and update position is the exact same thing. I have to buy the bitasset paying the premiums..Therefore no point in trading in the DEX if I can't cover my debt anytime I want..

What am I missing here? Have you actually tried to trade in the DEX or you guys assume it does things when it doesn't?

They are not the same, although they use the same operation type. "Close position" does one thing only: it sets debt and collateral to 0 for that asset, while "Update position" lets you adjust the debt and collateral any way you like, for example to remove or add collateral, or remove or add debt.

[abit]

Thank you very much @abit

Do I understand correctly that in case of margin call the max premium over the feed price is 10% ?

Yes

[mf-tzo]

Thank you very much @abit

Do I understand correctly that in case of margin call the max premium over the feed price is 10% ?

[abit]

@xeroc fair enough...I am aware of all that... I will ask again...

What is the "close position" and "update position" difference?

If no one is selling the bitasset I need to cover can I reduce my collateral ratio to zero and get margin called? What premium will I pay over the feed price if I do that?

I am sure that there is a better option to cover a bitbtc or bitusd position without paying 40% premium and I am not aware of it..

You can't set it to zero..
Without an ask order you'll never be margin called. Once you're called the premium is the average SQP, see https://cryptofresh.com/a/USD for example (/100)

[mf-tzo]

@xeroc fair enough...I am aware of all that... I will ask again...

What is the "close position" and "update position" difference?

If no one is selling the bitasset I need to cover can I reduce my collateral ratio to zero and get margin called? What premium will I pay over the feed price if I do that?

I am sure that there is a better option to cover a bitbtc or bitusd position without paying 40% premium and I am not aware of it..

[xeroc]

if poloniex hasn't had the volume it has, you would end up at the same issue there ..
If no one sells a token to you at the price YOU want, then you need to go higher with your price or find someone that is willing to sell it to you ..

there are many people working to bring more liquidity to the market as we speak .. but that is not a matter of just a few hours .. people need to deploy integration tools and libraries and need to modify their bots as well as they need to figure out profitability and risks

[mf-tzo]

@xeroc and @bytemaster I am aware of the risks of getting short in our DEX. I am not sure I am aware of the correct options available if I want to cover my debt by paying the less premium. So my OP questions still hold unanswered...

I just need (and I am sure I am not the only one here) some more clarity on the mechanics.. Answers like "there is a button "close position" or " you will be able to exit at the right price" are not complete ..I know you guys are busy and appreciate your time. But throwing some light will increase trading and hence liquidity..Otherwise I can also find the easy solution like everyone else and trade in Polo...

[mf-tzo]

At the right price you will be able to exit.

lol.. So you mean that if I want to cover my debt I will have to pay the premiums on the order book because of lack of liquidity right?

so for example I see that the best offer on the bitbtc now is 150,000 and the btc trades currently @ 105,000 so effectively I have to pay c40% premium if I want to repay my bitbtc debt correct? And there is no other way I can cover my debt by i.e press "close position" or reduce my collateral ratio so I get margin called and pay less than that premium?

[xeroc]

What am I missing here? Have you actually tried to trade in the DEX or you guys assume it does things when it doesn't?

Most of us knew the risks of going short and many here are actively trading.
There are even several trading bots developed and tested in the public testnet

[bytemaster]

At the right price you will be able to exit.

[mf-tzo]

account overview page ..
there is a button next to your debt position that states "CLOSE POSTITION"

last time I checked when I press "close position" i get an error message saying that the position can't be closed since I don't own the bitasset. Hence I have to buy first the bitasset from the order book which have orders with huge premiums most of the times. So in effect close position and update position is the exact same thing. I have to buy the bitasset paying the premiums..Therefore no point in trading in the DEX if I can't cover my debt anytime I want..

What am I missing here? Have you actually tried to trade in the DEX or you guys assume it does things when it doesn't?

[xeroc]

account overview page ..
there is a button next to your debt position that states "CLOSE POSTITION"

[mf-tzo]

How can someone cover his debt if there are no sell orders at reasonable premium?

What is the "close position" and "update position" difference?

If no one is selling the bitasset I need to cover can I reduce my collateral ratio to zero and get margin called? What premium will I pay over the feed price if I do that?