Note that holding Mastercoins in escrow is quite different from holding Bitcoins in escrow. Bitcoin is well established and by taking certain precautions I can minimize the risk of losing someone's Bitcoins. Mastercoin on the other hand is an evolving protocol and I've already seen a couple of transactions that were open to interpretation. I will of course do my best but I have to stress that I can't take on any responsibility for Mastercoins held in escrow for prefunded orders.
DGulari, regarding your comment about Pouncer: I want to highlight that he has been of enormous help and put countless hours of his time into this.
However, I had hoped that there would be an upper limit on fees. I don't think any single transaction should exceed $100 or .1BTC. Each transaction takes the same work - whether it is for 1MSC or 1000MSC. Can't we make a flat fee? That makes more sense.
For the transaction I just funded, the fee would be over $400. I think this is excessive. You guys are awesome and I am glad for your help - but I'd like fees to be in the spirit of bitcoin rather than Visa.
For higher amounts that might indeed be quite a large fee. And you're right, the amount of work is the same for small and large amounts. What changes is the amount of responsibility. I don't have any concerns holding 10 MSC in escrow because I could compensate a loss of 10 MSC out of my own pocket. But holding a couple of hundred Mastercoins is another thing and my gut tells me that this could lead to problems. That's why I think a percentage fee is justified.
But an upper limit on fees could be a solution, I'll be thinking about that.
For your first prefunded order, let's go without any fees at all. I'd like to test this concept and see how it works, so there's no need for a fee right now.