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BAIP8: Set Force Settlement Fee #36
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Abstract
This BAIP can be seen as a subsequent optimization of BAIP2, it propose to feed price as the highest of current market price and the 24 hours moving average price.
Motivation
In the past several days, force settlement happened more intensively than before, the background is that something made BTS attracted more attentions and BTS price went above 0.22CNY - which is the voted threshold per BSIP76, as stated in BSIP87, almost all the users agree that the settler need to pay more cost while executing force settlement, and the cost will be paid to system as fee.
Rational
Now there are 2 parameters for force settlement: Force Settlement Fee Percentage(FSFP) and Force Settlement Offset(FSO) for each smartcoin, both are controlled by the smartcoin owner.
When a force settlement is executed, the buyer sells smartcoin with quantity
X
and get collateral in quantityX*(1-FSO)*(1-FSFP)/feed price price
, the settled debt position owner sells collateral in quantityX*(1-FSO)/feed price*
and get smartcoin in quantityX
, the delta in paid and received collateral in quantityX*FSFP*(1-FSO)/feed price*
will be paid to the owner of the smartcoin as force settlement fee.In this scenario, as a price offset parameter, FSO is irrelevant to fee charging, it just define force settlement price =
feed price/(1-FSO)
. and the force settlement fee is paid in collateral and the amount is calculated out based on force settlement price and FSFP.Specifications
Set Force Settlement Fee Percent as below:
bitCNY: set FSFP=1%, FSO = 1%, another option is to just set FSFP=1%
bitUSD: set FSFP=1%
bitEUR: set FSFP=1%
Explanation
currently FSO(force settlement offset) of the 4 main bitAssets are all 1% except that bitCNY has a FSO of 2%, reduce FSO as 1% and at the same time set a 1% FSFP will make force settlement price almost unchanged.
Discussion
https://bitsharestalk.org/index.php?topic=32539.0
Copyright
This document is placed in the public domain.
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