If a loan is even taken for 1 minute I should be paid interest for 1 hour per the rules. If that doesn't happen, I loose out - I don'T see how there should be a "break even" point.
I meant that traders wouldn't do this because there is no clearly profitable incentive for them. Also on the other hand, due to the low frequency that auto-lend seems to post new loans once funds become available, taking a loan for 1 minute can mean that there are several hours where my loan offer will not be reposted and not available to be taken. All this for free.
good point |
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I'd love to see confirmation that loans will ALWAYS be charged interest by the way, so far it seems interest gets calculated on all open lonas randomly about every 10 minutes or so, people who do a bit of experimentation might be able to have short time positions that don't pay interest at all.
Is that really an issue though? If it is really calculated every 10 minutes, you would have to make 0.24% /10 minutes just to break even. Not saying it can't be done, but hardly seems worth the trouble to me. |
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I have a 12 year old Renault Scenic works as charm, I love the cheap parts if I have to repair anything, however I own this car for sometime I hadn't to repair anything except the check that I have each 15000 KM and maybe the brakes I had to change.
my wife want even a bigger car, but I am not even thinking about changing this one, it is working and it is serving its purpose.
Same here, I own a 13 year old Honda Civic since 3 years now. Never had anything break on it, cheap as fuk to drive around in... Beats me why I would spend hard earned money on a status symbol like a fancy car. Even if I was rich i'd probably go for something midrange than a Ferrari or Porsche... I wouldn't be surprised if this is a somewhat general characteristic of a typical 'bitcoiner'. I have got a bunch of second-hand furniture, because it looks ok, does the job, and costs way less than new stuff. Don't have a car either. I would much rather invest the money that I save by doing so, in the hopes of becoming less dependent on income from my job, and doing only what I feel like doing. |
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A loan should be for a certain number of days at a certain interest rate and if the borrower wants to pay it back early then there is a 2-5% early repayment fee. This would be so much better.
I understand where you are coming from, but imho Bitfinex isn't going to do that. They will want people to move in and out of trades easily because they get an exchange fee each time. Plus, being able to exit a position whenever you feel like it may drive up demand for margin trading, and thereby increase lending rates. |
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Pretty amusing read, thanks OP  Doesn't really apply to Bitcoin (or any other market) though, right? Sure, there are plenty people that get rich simply by luck, but the Buffett example is that of a coin -- presumably a provably fair coin, meaning there is nothing to predict about tossing that coin besides the fact that either outcome is equally likely. That's hardly what happens in markets. Why would human behavior, guided by (depending on your philosophical assumptions) free will or quasi-deterministic processes suddenly become completely random just because it is group behavior rather than that of one individual. Sure, there's some noise and randomness, but almost certainly not to the point where there is no prediction possible. Meh. Unnecessary rant, I guess. After all, this is the speculation subforum. Surely noone here thinks the market is nothing but a coin toss. I'd be willing to bet that for most speculators here there is sufficient complexity and number of variables to render their predictions about as accurate as guessing coin flips. chaos theory FTW |
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I also don't understand the Minimum and Maximum lend times. It appears that lending offers have a maximum amount of time they can be loaned out for but the borrower can pay these loans back any time they want? On the loan request column it has a Minimum column which I assume means that the loan cannot be paid back sooner than this? What happens if someone wants to pay back a minimum 365 day loan in 30 days? I don't know exactly because there is no explanation of any of this anywhere on bitfinex.
The first part of your understanding is correct. A borrower can pay back the loan at any time he wants, provided that it is within the limits (max. lending time) as chosen by the lender. The right column in the lending tab are demands from borrowers for a certain loan. The minimum lending time here indicates the minimal "max. lending time" they request. Thus, if you start a new lending offer, and max.lending time => min. lending time and the offered rate =< requested rate, then your lending offer will be filled nearly instantly. If the rates of your outstanding lending offers are too high for current demand, they will just end up in the left column, until somebody comes by and borrows the money. |
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No need, I just sit the crash out.  You just bought that thing!  Just needs some time to get repaired, and it 'll fly better than ever  . |
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My personalized summary of yesterday's events:  Does that thing have an ejection seat? No need, I just sit the crash out (and do a little bit of trading). |
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My personalized summary of yesterday's events: |
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So, bitfinex, how'd the last days go? Many margin calls? Any losses, where the margin call was executed too late? Any losses covered by insurance or being passed to the lender (without insurance)? Any insights on server performance, or any crazy stats from all the panicking users rushing at once?
People, I'd like to start a round of applause to the bitfinex team for upgrading the servers back then. It wasn't that pleasant back then, but it made the last hours so much more bearable! Imagine lack and downtimes *now*!
*applause*
Yeah, the site seemed to be performing well (for me at least). Is the interest paid into the deposit acc or the exchange acc?
deposit |
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What happens if I lend someone money and lets say a few hours later they return the loan. Do I get any interest for that? Or is it only calculated daily.
calculated per hour, paid out daily |
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2) I took a position shorting a few LTC/BTC, but it looks to me like there is some sort of glitch. My "active positions" in trading wallet show the position completely filled, but in the "margin available" part, it looks as if the orders were only filled partially (it still shows available LTCs, while my active positions show all shorted in LTC/BTC form). In the lending tab as well it looks as if the order only went through partially ("unused borrowed funds" is not empty, "borrowed funds used in margin" shows only part of the position).
This seems to have resolved itself. |
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2 more questions:
1) Is LTC/BTC just a derivative, or is there any way to redeem litecoins or bitcoins from it?
2) I took a position shorting a few LTC/BTC, but it looks to me like there is some sort of glitch. My "active positions" in trading wallet show the position completely filled, but in the "margin available" part, it looks as if the orders were only filled partially (it still shows available LTCs, while my active positions show all shorted in LTC/BTC form). In the lending tab as well it looks as if the order only went through partially ("unused borrowed funds" is not empty, "borrowed funds used in margin" shows only part of the position).
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I will buy $10,000 worth of bitcoin at a market value to USD between $15 and $35 which is fair value for the currency..everything above that is absolute bubbly.....I congratulate all those who got rich from the boom but the bust can be extreme..
keep dreaming |
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Wow.
And I'm already letting myself imagine that I could've called the bottom on that if I'd been holding any fiat.
I missed by $40 (put it too low). Not sure if we won't revisit though. We will, and even lower. Monday is quite far away.... I am thinking mondays don't matter anymore now. Would be surprised if the exponential bull run (the short term one) continues after this. The main question is where the new equilibrium lies. |
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Wow.
And I'm already letting myself imagine that I could've called the bottom on that if I'd been holding any fiat.
I missed by $40 (put it too low). Not sure if we won't revisit though. |
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Yikes, this is looking ugly.
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Thanks for the info and advice guys !
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have such things happened? have there been cases on Bitfinex where insured loans did not get payed back in full to the lenders? so the lender is fully exposed to a loss if the borrower blows up? What makes a loan insured or un-insured? Is that an option that the lender chooses before he posts his lend offer?
Yes, but there is rarely (read: never) any money left in the insurance pool. Only if the loss is greater than the margin that the borrower has left during forced liquidation. There were losses in the april crash, but bitfinex absorbed them themselves, then they introduced the insurance option. |
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