The result is that we avoid 99.9% of all problems with the wall street systems which ultimately attempt to replace market forces and voluntary trades with equations and computer models in a manner that market participants have no way of understanding.
As someone who has made 2,000,000 trades on Wall Street over 20 years...
And about 2,000 this week as a Market Maker in about 150 stocks...
It's completely nonsensical statements like this = pure FUD...
That often show how OUT-OF-DEPTH engineers are when trying to re-invent the Financial Markets.
Ripple is an example of this = something Reuters might have been doing in the 90s.
You guys are gonna be running elaborate simulations on a Testnet...
In order to divine information a good Margin Clerk could give you in 15 minutes.
Also, I would standardize using either 150% or 50% to address the same thing.
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From the White Paper:
2. by a miner who enforces a margin call when the value of the backing falls to less than
150% of the value of the BitUSD....
If the miner is forced to exercise a margin call, the network assess a 5% transaction fee in order
to motivate market participants to proactively manage their margin. If the market moves so fast
that the margin is insufficient...
Many fast markets are manufactured...
So miners will incentivized to game this market to accumulate FAT fees?
and in https://bitcointalk.org/index.php?topic=279771.0;all also he wrote:
"The legal requirement of SETTLEMENT on a specific date...
Whether by Delivery or Cash Settlement is what enforces futures markets.
It's not clear to anyone whether you have a proper mechanism in place.
As for bid-ask spreads... there is no such thing as "you now have".
Bid-ask spreads are a function:
(a) market liquidity
(b) market volatility
(c) market manipulation
You are gonna start with very liitle (a)... and a large amount of (b) and (c).
Including rules like your 5% short closure Tax that will create massive (c).
In general, overly complex systems are designed...
To make it easy for Insiders/Experts to fleece the ordinary Lambs...
So complexity in and of itself... is a reason for skepticism."
@ bytemaster, you have thoroughly addresses concerns of canicula... But can you reply to some of the concerns of quantplus?
