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RE: How BitShares protects MPAs using Margin Calls
Very informative. I was under the impression that once called your entire short will be liquidated. Thanks we keefp learning.
Very informative. I was under the impression that once called your entire short will be liquidated. Thanks we keefp learning.
Good point. The word "safe" in "Alice's position is safe again" is only from the POV of the blockchain.
It is true that Alice will remain in margin call territory until either the price feed returns to its original position, or Alice updates her short position. In a liquid market this means that in fact the entire short position will be matched with orders on the market.