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Re: GAW / Josh Garza discussion Paycoin XPY btc.com Bitcoinist. ALWAYS MAKE MONEY :)
by
Revelation
on 16/05/2015, 11:35:32 UTC
wait wait wait... Where is the 100% proof of me dumping coins on the exchanges?

Oh, the man himself. Can you point me to some details about the xpy.io hedgers? I don't get the part where you pay e.g. a 10% fee for a ~6% gain in 3 months.


Yeah the purpose of this is for people to be able to invest in XPY while completely sharing in the upside verses limiting the downside to a maximum of 10 percent loss.  In this account you would need XPY to gain 5 percent to makeup the paid fee.

a good explanation for some people can be found here.  http://www.investopedia.com/terms/h/hedge.asp

These are really limited due to the fact its basically shorting XPY for the purpose of us trying to create a protection of sorts for new or current investors.  It was started as a pilot to see if this would be something someone is interested in.  So far most people are just confused.  So maybe the financial move is probably a little to confusing.  Ultimately the Goal of this program is to try to create hopefully winning situations for investors into crypto... or at minimum create limited downside propositions.
Suppose I have a position in XPY in the amount of 50k coins and I buy a 3-month hedge. Now, if at the end of my hedge term XPY price is zero (e.g. coin is delisted from all exchanges) how would you reimburse me for my hedge. Would you put BTC from your own pockets?