Quote from: Algebrato on November 14, 2013, 09:54:06 PM

Quote from: Tomatocage on September 05, 2013, 09:04:32 PM

Collateral must be in the form of Litecoins, Primecoins, or mcxFEE shares (mcxNOW.com)

This idea popped to my mind just recently, but I might've understood the thread completely wrong.
Have you considered, that someone might use this as a hedge against LTC, Prime/mcxFEE crash (and also shorting bitcoin?)?
Example:
1) One takes a loan of 1 BTC at btc price of 100 LTC
2) Bitcoin price rises and is worth 120 LTC
3) Loan defaults and you are left with 100 LTC, about 0.8 BTC
OR
2) Bitcoin crashes and in that unlikely event when LTC (or others) the loan is paid back with BTC

I am not sure, if this came up already and if you've already thought of this. This is only a theory, since usually BTC and LTC (and others) drop/rise the same time.

Except if 1BTC=100LTC at the time of the loan, TC will ask for 125 or 150 LTC as collateral or whatever he considers safe to avoid 3).
Or at least that's what I understood. Grin