Topic: [OFFICIAL]Bitfinex.com first Bitcoin P2P lending platform for leverage trading - page 161. (Read 723861 times)

I apologize if this has been discussed before...

There is an implied "put" option a swap taker has. The Swap Taker can take at a specific rate for a specified period of time. Let's say BTC 0.0055% per day for 30 days. Let's say that someone posts 0.0050% for 30 days, then the Swap Taker can take the new swap and cancel the original swap.

I do not have a problem with allowing the person to cancel, especially if they are cancelling a loosing trade. Since the swap provider does not have a similar cancellation ability, I think there should be a cancellation fee for the unused remaining time. That way, the swap taker will be more careful about how many days they take.

It's all in this thread. Although 200+ pages get a bit long..
Maybe have a FAQ in the OP?

- not connected to bitstamp, as bitfinex has the largest volume now anyway. It's said that in emergencies, like in a flash crash, they would use bitstamp volume to cover things. No idea if/how much funds they have on bitstamp on hold though

- that question doesn't depend on what kind of funds you send them, neither what you do with the funds, nor what exchange you use. "What are the chances btc-e disappear with my bitcoins?". Noone can answer you that.

Ente

I'm still curious 1) is this still connected to bitstamp?  2) if say I decide to keep my balance on bitfinex and lend out, what are the chances these guys disappear with my money?

I'm still curious 1) is this still connected to bitstamp?  2) if say I decide to keep my balance on bitfinex and lend out, what are the chances these guys disappear with my money?

Waste of time. Just use steroids. Girls can't tell the difference. 

[...] and I bet you don't even lift.

Also, if lenders could close swaps, they could get the trader liquidated instantly if he is underwater already and the then-best offer has too high costs for his position.

Or, more extreme: what if there was one lender with a huge swap, and one trader has a position open with that? Sometimes the swap book dries up. Now when that swap is closed by the lender, the trader might not find enough swap on the whole book to refill it. In that case his position would have to be liquidated. Which then might even lead to an avalanche, resulting in a flash crash, wiping everything out.

So, the difference is that when a lender gets his swap closed, he has his money and that's it. A failsafe situation.
A trader who suddenly gets his swaps closed might be in trouble, and he couldn't do anything against it in advance.

Ente

No, that is just a lot more supply than demand manifesting in lower and lower interest rates.


What's the point? You can't short DRK now can you. Yes, it'd be fun to short XMR but if BFX adds it then they will probably not let us short that either.


Could you please visit http://www.bfxdata.com/combined/btc.php and click "6m" on the second chart from the top and take a really good hard look at it and tell me more about how increasing the max leverage makes a whole lot of sense to you at this point in time?


WHY oh why do people take these loans in the first place? Do I as a trader take your loan to buy a new house or to hold BTC until doomsday OR am I simply looking to buy at a seemingly low price just to sell it off to someone else at a better price? Do I have any reason what so ever to keep holding a loan after I've sold off my position?

Please try to realize that TRADERS take these loans in order to DO A TRADE. That's it. It may seem unfair to you that I take a 30 day loan and return it after 7 days or 10 days or 14 days if my price-target is reached but that is how it works.

Consider this: I can take 2 day loans and replace them with new 2 day loans when the first loans expires and keep my position for years if I want to do that - all with 2 day loans. You are saying that I will have to accept that I will be charged for 30 days if I take a max-30 day loan. Do you seriously believe anyone in their right mind would take a 30 day loan under those terms when there are always 2-day loans available?

I understand your greed but it's just stupid and ignorant, you are clearly new here and I bet you don't even lift. The current system works and it works well for both traders and lenders and there is no point in demanding very stupid changes that would end up giving you nothing anyway. You will get nothing if the terms change in a way that makes it very unattractive to take loans, no traders borrowing equals zero interest for you.

Please think one step ahead.

How can a trader know how long he needs the funds for?

Your proposed scenario would make bitfinex completely unattractive for traders... This is not a savings account guys...

A better system would surely be to hold both sides to the deal. The less good alternative is to allow both sides to cancel. But the worst system is to allow one side only the option to cancel. Normal contracts don't work like that. And the problem will get worse when the swap bots are introduced.

In the UK it is not possible for a borrower to repay a fixed rate mortgage early without payment of a large penalty (which can be as much as 5% of the outstanding loan).

Would be interesting. After Darkcoin turned out to be such a fail (over 70 % down since it's peak) maybe it's time for the next anoncoin.


Example: Trader decides to go long on margin at 0.15 % and is willing to hold for some time (chooses 10 days)
Price dips but trader is willing to hold. Now suddenly interest rate goes to 0.8 %. Lender cancels trader's loan and trader has to take 0.8 % and gets annihilated.

The moment this thing is introduced it'll be a nightmare for lenders, right now my offers are being split in several swaps, when you have maye 15 - 20 swaps provided and they start being closed by the bot randomly and automatically you're forced as a lender to login constantly during the day to place new offers...

I hope they at least give us an opt-in option to (even if our swap is at fixed rate) match the rate of other swap if the bot of the trader is going to close ours for that other swap, so at least our swaps aren't being closed constantly even if rates are going down.