Post
Topic
Board Announcements (Altcoins)
Re: [ANN] Counterparty Protocol Exploit - Cash out any CFD's
by
porqupine
on 25/07/2014, 11:17:25 UTC
Sorry for the dumb question but how is the BEAR allowed to bet 1,000 on 10 escrow while the BULL isn't?

Wouldn't the BULL want to employ the same leverage as the BEAR?

If they did, then the calculation would add up to 20.

delta = (initial_value - value) * leverage * config.UNIT

bear_credit = bear_escrow + (delta * Fraction(bear_escrow,
bear_wager_quantity))
bull_credit = (escrow_less_fee - bear_escrow) - (delta *
Fraction(bull_escrow, bull_wager_quantity))

delta= 1
bear_escrow(10) + ( delta(1) * (bear_escrow(10)/bear_wager_quantity(1000))
10.01
bull_credit  = (escrow(20) - bear_escrow(10)) - (delta(1) *
(bull_escrow(10)/bull_wager(1000)) = 9.99

9.99 + 10.01 = 20

It's like an order on an Exchange that can be split into smaller blocks - so that someone betting 1000 XCP - should be able to split to match with 10XCP, 100XCP etc. so they can get filled - if they needed to get matched exactly it would probably make the entire system useless.