BitShares Improvement Proposals and Protocols. These technical documents describe the process of updating and improving the BitShares blockchain and technical ecosystem.
BSIP38 introduced the target collateral ratio (abbr. TCR) option so that debt position owners can decide how much collateral to sell when being margin called. However, the TCR option doesn't affect force-settlements. When being force-settled, the debt position with the least collateral ratio (abbr. CR) will buy as much debt asset as possible (capped by its total debt) to fill the matched force-settlement order.
Some debt position holders may also like to sell as little collateral as possible when being force-settled. Since a debt position's CR would raise after sold some collateral, it's possible that the position's new CR would be higher than other positions', thus it's fair for this position to not sell more collateral.
The new options could include
a per-asset default_per_position_force_settlement_percentage option that can be defined by asset owners, floored by the maximum_force_settlement_volume percentage, and
a per-position force_settlement_percentage option that can be defined by debt position owners, floored by the corresponding asset's default_per_position_force_settlement_percentage option.
When executing (filling) a force-settlement, let the debt position with the least CR buy up to force_settlement_percentage of its total debt from the settle order, then reevaluate the debt position list and loop.
This would bring better experience for debtors.
Note: the design is incomplete, there are edge cases to consider to avoid infinity loop and for better performance.
BSIP38 introduced the
target collateral ratio(abbr.TCR) option so that debt position owners can decide how much collateral to sell when being margin called. However, theTCRoption doesn't affect force-settlements. When being force-settled, the debt position with the least collateral ratio (abbr.CR) will buy as much debt asset as possible (capped by its total debt) to fill the matched force-settlement order.Some debt position holders may also like to sell as little collateral as possible when being force-settled. Since a debt position's
CRwould raise after sold some collateral, it's possible that the position's newCRwould be higher than other positions', thus it's fair for this position to not sell more collateral.The new options could include
default_per_position_force_settlement_percentageoption that can be defined by asset owners, floored by themaximum_force_settlement_volumepercentage, andforce_settlement_percentageoption that can be defined by debt position owners, floored by the corresponding asset'sdefault_per_position_force_settlement_percentageoption.When executing (filling) a force-settlement, let the debt position with the least
CRbuy up toforce_settlement_percentageof its total debt from the settle order, then reevaluate the debt position list and loop.This would bring better experience for debtors.
Note: the design is incomplete, there are edge cases to consider to avoid infinity loop and for better performance.