So that would mean If someone settled $635.5 everyone else would be unable to settle their BitUSD for the next hour?
why 0.5% what is wrong with 20%?
I see it as protection for shorters... in all other trading engines, you get margin called and you still have opportunity to increase your collateral.
Another point of view: daily trading volume of bitUSD in last 24 hours was 1900 USD, in this context 635 USD per hour isn't that low number. Still good topic for discussion whether it shouldn't be set to some different value.
yes, the limit is to prevent the holders from doing sudden big volume force settlement and force the shorters out.
actually 0.5% is not so low, when Argentina people ask me for smartcoin parameters, I suggest them to set a 2% limit, but that is based on misunderstanding, because at that time I think max settle limit is per day!
after bitCNY change, up to now we saw force settlement always finished in a couple of hours under the 0.5% setting.
we can discuss what value is better, but I really think 20% is too high.
maybe this setting is not so friendly to speculators, but in my view, to design a rule, first priority is considering how to make the ecosystem become prosperous healthily, but not speculators' user experience.