In addition, the lending fee is now up to 15%, which is a huge increase. I highly recommend removing the flash return rate to allow for more efficient rate discovery instead of having rate artificially manipulated (I know Ente has other opinion on this), as borrower always have option to return fund early but lenders can never recall. Margin loan outstanding approach $16 million yet interest yet the FRR keeps declining.
lastly, there's no more mention of lender insurance, so I suppose that is gone completely, or are all lender funds now 'insured'?
Announcement story is that: "Another reason for removing swap insurance is that we have decided to effectively insure all swaps on the platform."I take this to mean that all swaps are now ensured by BFX and that the enormous total scandal fee hike for lenders is meant to cover this. I'm not sure why the word "effectively" is there, though. It's really binary, either swaps a) are insured OR b) swaps are not insured. As for the Flash Return Rate: My personal experience is that if you place offers above it and wait then your offer is taken eventually. Many people like to place fixed rate offers below it and that moves the average rate of all loans and therefore FRR down. There was 20,575,746.50 USD of outstanding swaps on February 6th 2014. That means that there could be quite a few million USD that's either withdrawn or spent to buy BTC or waiting in the shadows right now. A low rate is better than nothing and perhaps people with millions of USD and no girlfriend to spend it on figure that FRR is better than nothing. Me so confused on this fee stuff  Such confusion. Wow. I can put up with a 5% fee increase if everything is insured. But who's the provider and how do we know they can cover for the $15 million out there? Is there a cap? Does it keep up with the loan book's growth. The loan book more than double in a few months. If BTC flash crashed to $100 and stay there for a few weeks, can the platform stay solvent? |
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Just check out the new fee structure,
International wire 0.100% of the withdrawal amount, with a minimum of $20.00
Charged on your existing swaps, paid by the liquidity provider 15.0% (of the swaps generated by active contracts)
If I'm wiring $100k, that will be $100 USD, which is a bit excessive, esp I know I'll be withdrawing to a local HSBC HK account! In addition, the lending fee is now up to 15%, which is a huge increase. I highly recommend removing the flash return rate to allow for more efficient rate discovery instead of having rate artificially manipulated (I know Ente has other opinion on this), as borrower always have option to return fund early but lenders can never recall. Margin loan outstanding approach $16 million yet interest yet the FRR keeps declining.
lastly, there's no more mention of lender insurance, so I suppose that is gone completely, or are all lender funds now 'insured'?
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I think the day of the week effect is getting more pronounced. Friday + weekend generally a down day with Tuesday - Thursday up days. I speculate it has to do with the lack of fiat coming into the system on weekend, at least Bitcoin Investment Trust can't be buying on weekends.
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did the 630 wall get devoured or did it get pulled?
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Huge selling pressure at around 640-650, and consider bitfinex BTC loan book didn't increase, it does not look like the work of short seller. Someone really has lots of coins to unload at 640-650.
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I am holding about a 70% BTC, 30% LTC portfolio. I have been much more profitable on my LTC because of my dollar cost average of everything. Obviously, it is also because I was a little bit behind on my timing for buying the majority of my BTC. I don't think LTC will ever reach 1/4 of the value of BTC, but the ratio will most likely increase to significantly higher levels than now. I think it is mainly attractive because of the confirmation times as well as the psychological thought that it is the "next best thing" for people who feel they missed the boat with BTC
LoL, Who in his sane brains will think that LTC is the "next best thing"??  LTC has been here long time ago and it has already his massive pumps and dumps. It is more reasonable to take a look to any of those 2º generation cryptos like nxt, etherium, xcp and so on. Most of them probably fail loudly, but I am sure one of these is called to be the "next best thing". a lot of the those second generation coin smells like ripple, a bunch of pre-mine scamcoin or closed system for speculative purposes. |
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selling pressure at low 640's looks very high, every time it's past 640, medium size asks keep popping up. May be quite a while before the seller runs out of coins. Thursday is traditionally the most bullish day of the week, see if we can make it to 675, otherwise, I see it go back down to 600 by Monday.
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yes, HK as in Hong Kong, the HSBC premier supposingly allow me to open accounts in Europe offshore - just want to get an opinion as to what people uses for SEPA.
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Done some trading on Kraken, turns out wiring Euro to HK costs 40 Euro which I would rather avoid; I do have HSBC Premier, want some recommendation as to where in Europe should I open a bank account through HSBC that would allow SEPA transfer? I prefer not to pay any monthly fee on the bank account.
Thanks.
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I see all these bitfinex referral code, lifetime rebate thing coming up, what's up with those. I am with bitfinex since last March (Mar 2013) but I don't see anything like these? Can someone please kindly give me a quick description about this? Do old members qualify?
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while a bitcoin credit union is an idea, we've to gather support, a couple of guys cannot form the deposit base. We have to think of the scope of our services and target.
some of them include: serving bitcoin related business, esp exchanges - we hear how many got their account closed
we have to brainstorm and come up to further expand on the idea.
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The thing I really don't like about leverage trading is you have to close the trade at bitfinex. You cannot simply return the borrowed coin / usd by depositing.
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with his identity revealed, chance of a 'dump' or sell for money to assume a new life increased. so I guess the fall is 'justified'
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Trading profits are subject to your local capital gains tax. This means that you must pay the capital gains tax on your trading profit - just like you would if you were trading EUR/USD. You can also deduct any losses you had. All that money you obviously had at MtGox when they closed down would, for example, be a deductible loss. You agree to comply with your local tax laws in the Bitfinex TOS.
It also says that "Suspicious transactions will result in a Suspicious Activity Report being submitted to the relevant regulatory and compliance bodies applicable in the registered members' verified country of origin.". This means that you will be reported if you are the money launderer who is doing the suspicious transactions. You also agree to this in their TOS.
Your question indicates that you do not want to follow your local fascist governments laws. That would be against Bitfinex TOS and you should not use it if that is the case.
Some places you only have to file once a year. Why not just open a new account every tax season, that would solve the bfx tos issue. Also some countries do not levy tax on currency trading profits, yet others may only consider fiat transactions (how many EUR tax to pay for a CAT vs DOGE trade, how do you pick the rate dates, what happens if there is not enough liquidity to move the tax obligation into fiat, does the taxable profit actually exist then? Questions go on and on, and pretty much none of them have been tried in court in a cryptocurrency context. Paypal, while not the tax man, prohibit bitcoin and other virtual currency trading. But apparently they are completely fine with virtual world currencies such as the Linden Dollar.. Lawyers make no sense. Another thing to think of is that at least if you are in the EU, count on each and every major exchange to be hit with requests from your tax man a few years from now. Treat it as you would any semi-legit offshore destination (ie. they're not broadcasting your transaction volume and balances, but may very well be volunteering info on interest paid / per year / account holder, as I believe quite a few of the EU <-> tax haven reporting agreements look like that. people are afraid of theft and lawsuits, and regulators. Linden Dollar is not big enough to cause an issue. Last thing US wants to do is kill all game currency and potentially even store credits. |
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BFX USD loan rates going up (from 0.08 to 0.20%).
total loan outstanding only increased by $600k. I think the loan book got a lot thinner since the day it flash crashed to 102 on BTC-E. |
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@BFX: Kraken is gaining momentum slowly by the way (though mostly in EUR, not USD) - please re-consider adding them as alternative to Bitstamp and start trading a little bit there too! I think Kraken is off the table unless BFX somehow gets a EUR banking partner and switches to trading in EUR and I don't think that's likely. I really would like to see BFX ditch USD, though, but I'm not convinced EUR is a good alternative and I also think a whole lot of BFX users would be unhappy if they suddenly switched to CNY (which would be a much better choice than USD or EUR). And RUB is off the table now that mother Russia basically banned everything to do with cryptocurrencies. There is no reason they could not support multiple fiats as well as cryptos and all the crosses of these. This is how most currency trading works and should be workable here too  Check out Oanda or IB's fx service for how it can be done. Both of these let you convert physical fiat at typical FX spreads of a couple of pips. kraken is in the States, I know they are licensed and have a decent running exchange, but I don't think it's worth the risk at the moment. Maybe one day, BFX will be like Interactive Brokers of stock / options trading. |
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We should create a bitcoin credit union.
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what kind of a move, percentage wise, is needed to trigger margin call assuming you are fully leveraged?
It depends what your level of leverage is on Bitfinex, and whether you "cheat" the leverage by borrowing against bitcoin instead of usd. Most people have 2.5 to 1 to leverage, and you can cheat this by exchanging to bitcoins first and then borrowing against your bitcoins, so that your leverage is 3.5 to 1. I will assume the cheating case since you asked "fully leveraged". Also the margin requirement for someone using this leverage is 13%, meaning you need to maintain an account value equal to at least 13% of the USD that you borrowed. Let's say my account value was $600 and I bought a bitcoin for $600, then I leveraged an additional 2.5 bitcoins in a margin position on top of that. That means I borrowed $1500. In order to stay alive, I need to maintain an account balance (including unrealized gain/loss), of $1500 * 13/100 = $195. $195 is the neccessary net value collateral (or "margin") that bitfinex needs at all times to make sure they can quickly close my position if I start approaching the red on my account value. If it goes below $195, I am liquidated. For every dollar that bitcoin goes down, I lose $3.5 of my account value. That is because my 1 real bitcoin is losing $1 of value and my 2.5 of leveraged bitcoins are causing a $2.5 unrealized loss. I will do a calculation to find the amount of loss that I need to reach $195. $600 - $3.5*x = $195. 3.5x = $405 x = $115.714... The price needed to drop $115.714 for me to be liquidated. That makes my liquidation price $600-115.714 = $484.286 Bitfinex always shows this liquidation price next to your leveraged position, though I'm not sure if it's calculated properly in real time when you're "cheating". The percentage move is $115.714/$600 = 19.2% I know a lot have happened, but it seems bitcoin "stabilized" a lot and it's not easy to hit the 20% threshold to get forced liquidation. |
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what kind of a move, percentage wise, is needed to trigger margin call assuming you are fully leveraged?
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Got a page like this - is binfinex down for anyone else? www.bitfinex.com - Connection failed Error code 32 The proxy failed to connect to the web server 2014-03-05 06:47:51 UTC ******************************************** looks like it's back to normal |
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