[Daily Discussion] Sunday, October 04, 2015

https://bitcointalk.org/index.php?topic=119745.msg1330687#msg1330687

A harder one now : What do you think about the whole architecture, to be more precise, about the fact that everything runs inside resque workers leading to potential race conditions, and unexpected behaviour ? Did you make any changes to the way things run and the order in which they run ?

https://bitcointalk.org/index.php?topic=119745.msg1351334#msg1351334

In others news, I would like to address an issue today: Bucket shop and margin trading

So, some of you addressed valid concern about the current hedging system for margin trading. As I said earlier, we will set up a new system for this. I'd like to explain it here to have your input. But before, I'd like to warn you about a thing: we have a security check for unbalanced position: -if there is more than 100 BTC unbalanced position (ie total long - total short opened positions) for more than 12hours the system will automatically reduced opened position that are in profit (but you keep the profit of course) until the system is balanced again. So you don't loose anything but potential future profit. This is the only way we have for now to keep a balanced system. This has happened 2 times so far (with recent market movements, lots of short position have been closed). This is until we set up our new margin trading system, which will be as follows:

-There will be different kind of sub-accounts (wallets). The deposit wallet will have a locked period during which you won't be able to withdraw them. -These funds will be used to lend to users opening positions. We won't hedge position against one each others (ie, if someone opens a 100 short position, that won't open a 100 BTC long position slot anymore). -When you will open a new position, bitfinex will tell you how much is available to open a long position and how much is available to open short one. It will tell you the maximum period during which you can open your position (for example 7 days). -If you open a position, you agree that after this period of 7 days (for example), if your position is still opened, it will be closed automatically at market price. -Finally, depositors will be remunerated with an interest rate (the longer you deposit the higher the interest rate) while position will be charged with a swap.

Two things result from this system: -this solved totally the "bucket shop" problem: at any time the system is always balanced, whatever the users do. -we will need people willing to deposit money (bitcoin AND usd) without opening position.

/r/BitcoinMarkets Thread Parent