Maybe I missed something because of 6 pages discussion.
I am afraid all of the 3 options are not good enough,we should find out another better ways .
My consideration is below:
The case happens by the trigger of inadequate collateral.
This kind of cases maybe always happen suddenly and sharply as some critical issues were exposed.
Think about the value of BTSX drops 70% suddenly because of the explosive panic .
If we take #3 mechanism, the BTSX would be diluted more than 50% by the program automatically.
The problem is , because of the severe dilution ,the confidence of the market would crupt, shareholders may dump BTSX frighteningly... ,that is the vicious circle.
I think the footstone of BTS system is the confidence of market, and we should do our best to avoid any potential and even tiny hurt to the coinfidence.
3# mechnism maybe is the better choice than others, but ,I think we should try to find out the better.
Some guys point out we can set up reserves for this , maybe it is a good idea.