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How much responsebility does a larger investor have?

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binggo:

--- Quote from: Customminer on August 17, 2019, 03:36:22 pm ---
--- Quote from: binggo on July 09, 2019, 02:37:17 am ---Do you want to control this situation?

Charge fees from the margin call，then he will  become responsebal for his debt.

--- End quote ---

What % would you recommend?

--- End quote ---

maybe 1% first.

Charge fees is not main goal, the insurance fund which build on the fee is the purpose.

The system will increase the risk by the margin call which can't be eaten, so the system must have the insurance fund to decrease this risk.

Where did the insurance fund come from？there is no free lunch，the one who was margin called and then closed the posion in the market，he must pay the system insurance fee.

Lara3096:
The role and influence of institutional investors has grown over time TT Rock Stars.

R:

--- Quote from: binggo on July 09, 2019, 02:37:17 am ---Do you want to control this situation?

Charge fees from the margin call，then he will  become responsebal for his debt.

--- End quote ---

What % would you recommend?

binggo:
Do you want to control this situation?

Charge fees from the margin call，then he will  become responsebal for his debt.

bitstopia2049:

--- Quote from: startail on July 08, 2019, 02:07:23 pm ---
Should we force a TCR, to limit the impacts of forced margin calls?

--- End quote ---

https://bitsharestalk.org/index.php?topic=27733.msg328704#msg328704

This was the high risk/high reward position discussed here

Since the protocol can't control investor motivation it can only provide guardrails..thus optional TCR..

So how do you determine what the minimum non-optional TCR should be for margin accounts that hold more than x% of total debt in circulation?

e.g...

If margin account has > 1% of total bitUSD debt in circulation  >>> default TCR should be > 175%
   >5%    then  185%
  >10%  then   195% 
  >25%  then   225%?         (max?)

or some other sliding scale?

and under what circumstances would the margin account holder be able to override the default TCR if they wanted to partially close out their position using the collateral in the margin account?

Would it be only under low liquidity conditions or at anytime, even during bull market runs?

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