373300+ entries in 0.11s
mircea_popescu: jurov well you don't HAVE to settle, you can just sell it back later
mircea_popescu: seems the usual overreaction. no such thing happened as far as anyone knows
mircea_popescu: was supposed to start today. i guess davout is having some tech trouble ?
mircea_popescu: now you're in... now you're out. back in... back out...
mircea_popescu: making it obvious when someone defaults and making responsibility stick for defaults is good enough.
mircea_popescu: looky, economy is built on trust and people doing their job. it's not really built on "making it impossible" for people to default.
mircea_popescu: i tell you euro will turn worthless in the next ten years a degree of magnitude more often than btc will
mircea_popescu: and moreover he has the means to go delta neutral as he has ready access to a spot market.
mircea_popescu: of course, what he says is that he's not going directional, and it makes sense for him not to, if he knows his business,
mircea_popescu: and it's practically better than the alternative (hold 1mn euros which also COULD be worthless)
mircea_popescu: still, on one hand it's a much better liquidation event than either the best or the most recent non-mpex liquidation event, on one hand
mircea_popescu: that COULD be worthless, obviously. and it'll have to be accounted for.
mircea_popescu: well suppose the mm gets 1mn contracts, by depositing 1560 btc.
mircea_popescu: lyspooner certainly all changes are announced before the contract trades. this is sacred.
mircea_popescu: admittedly there could still exist an edge case where the mm splits and the holders book a loss
mircea_popescu: anyway, the mm deposit could have been in either of the pair, but btc seems safer.
mircea_popescu: no there isn't. you've been looking at eurodollars too long.
mircea_popescu: lyspooner that is one way to run it. there's no guarantee it'll be the way it's run.
mircea_popescu: edy for contract holders from the part of the Exchange.
mircea_popescu: (a) The Market Maker will immediately notify the Exchange should observance of the terms of this contract become impossible for the future. Should such notification be received, the Exchange will distribute the Market Maker's deposit to contract holders, in proportion of the number of contracts they hold but not in excess of the implied spot value rounded to the lowest 10. This distribution will constitute the sole rem
mircea_popescu: (c) The Market Maker will make a deposit of BTC with the Exchange, on the basis of which the Exchange will create a number of X.EUR contracts in the Market Maker's account, by the criterion of the weighted spot price rounded to the lowest 10.
mircea_popescu: anyway, the phys delivery is mostly there to keep things honest. unlike all the bucket shops running a soft-settled only "future"
mircea_popescu: this obviously being a mm feature, don't expect it to happen for 7.8 eur or some bs
mircea_popescu: but you can contact davout, and deliver euros to him on bc, which arrangement he may accept
mircea_popescu: at expiration you can either take 1 euro in cash if you go through the delivery process or have it rolled to next month's x.eur
mircea_popescu: <lyspooner> and do i understand the specifications correctly that davout will be responsible for defining delivery details? << within reason and in advance.
mircea_popescu: Apocalyptic you getting a lot of that in -otc these days huh ? i see Azelphur negging people, that's a rarity.
mircea_popescu: basically, the longer a block interval, the lower the reward
mircea_popescu: actually block rewards equal to say the 5th digit of the nonce are an interesting idea