Topic: [OFFICIAL]Bitfinex.com first Bitcoin P2P lending platform for leverage trading - page 162. (Read 723861 times)

Whether or not traders actually cancel fixed rate loans, it seems wrong in principle that they can but lenders can't.

This wasn't always the case. Before the swap bot (so if it is not active this is still true) the loan will stay active as long as the trader won't cancel it himself manually. Most traders didn't do that.

This wasn't always the case. Before the swap bot (so if it is not active this is still true) the loan will stay active as long as the trader won't cancel it himself manually. Most traders didn't do that.

This wasn't always the case. Before the swap bot (so if it is not active this is still true) the loan will stay active as long as the trader won't cancel it himself manually. Most traders didn't do that.

So a fixed rate loan is a one way bet for the borrower? If rates fall he can close the swap and take out a cheaper one. If rates rise then he benefits and the lender is locked in? Something seems wrong there.

The trader can close the swap anytime and only has to pay the time he consumed rounded up to the next full hour (iirc).

Also soon (or already) a feature will be introduced, that will automatically close fixed swaps and replace them with cheaper rates for the lender.

I have a question. What happens to (say) a 30 day swap at a fixed (not FRR) rate if the trader closes the position early? Does the swap provider get any compensation or does the swap just get closed with no penalty even if rates have fallen and the swap has say 28 days to go?
Thanks
D

BFX, you have to change something about the way swaps are taken. Since some time my "Swaps currently provided" list is cluttered up with dozens upon dozens of absolutely miniscule offers which guarranteedly nobody took out on their own but are part of some faulty matching algorithm. An offer of approx 6000 led to 3 swaps in the range of 2500, 1000, 1500 and then over thirty swaps at a dollar or even cents. The highlight is single swap undistinguishably from a single cent. Something like $0.01XXX3 Why is this happening? This is not only cluttering up the "swaps currently provided" list but also and much more importantly the "swap history" pages which get more and more inflated by the day.

Question to Bitfinex technical team about "hidden orders":
It used to be that hidden orders would be executed with the price not originally set, but with the one offered by counter-party. What was happening is that if let's say a hidden order was a sell for $600, but there is a bid for $600.5, seller (owner of hidden order) would get offered $600.5. In this case the "hidden order" indeed remained hidden. To compensate for such advantage, hidden orders were also having lower than regular priority in terms of their execution (meaning that hidden orders are executed after the regular ones, or per some fractional algorithm, you guys came up with).

Right now, hidden orders can be VERY easily discovered. Thus, if you don't see the last execution price matching current bid/ask, you found the "hidden order", so it instantly becomes no longer "hidden". Execution priority right now is also the same as for regular orders, so you know that until hidden order for that particular price "runs out", price is not going to move. The only thing which remains "hidden" right now is the size of such order. For this reason, people may even not want to place their orders, but wait until situation becomes more clear. Moreover, since the use of hidden orders is a rather heavily used feature at Bitfinex (I know this for a fact from personal experience), traders may be discouraged from more active trading and this in turn may be one of the reasons which makes our current trading so incredibly "thin". We have some $30 mln in active swaps, yet at times just a few BTCs can move the price several points.

I really liked the old model a lot better, mainly because such orders (even if they are big) did not interfere with natural price movements that much. I also have a strong feeling that the old model made trade patterns look a lot "smoother" (so to speak). Besides, and as I am sure you know, there are also a lot of concerns out there about order book being very "thin", so the observers out there are comparing our (comparatively speaking) "thin" order book with that huge borrowed swaps volume and naturally concluding that the flash-crash is imminent. If only our hidden orders would be truly hidden as in earlier days, I am pretty sure that there will be a lot more of them on the order book on both sides and we will have curves instead of current rectangles in the trading patterns. Right now even the 10 - 15 BTC orders look (and often behave) like "walls".

Were there any significant reasons for the change in structure of hidden orders?

Thanks.