Your points may be understandable to a degree, but not reasonable if you consider both sides of the deal.
The issue I am addressing is that there is not only severe volatility in the markets, but also severe manipulation, outright fraudulent practices that makes the normal 'market' rules almost void in realistic terms.
The issue I am addressing is that there is not only severe volatility in the markets, but also severe manipulation, outright fraudulent practices that makes the normal 'market' rules almost void in realistic terms.
Not pertinent with the issue as I am about to explain in the next comment.
The fundamental issue of fair practice and balance in these deals must take such circumstantial conditions into account before considering what is legitimate and fair to both sides make the contract. In this case, the market situation makes the liquidation of collateral in case of its value drop (temporary or otherwise) an extremely risk for the one handing out the collateral. If the lender takes that into account, it is not hard to see how this deal can be made more fair if you discount the arbitrary liquidation as an option. There are risks and rewards at play, both decided at split second sometimes.
No one mentioned arbitrary liquidation but you.
Since this kind of deals usually uses an escrow (and it is fair to use one if the BORROWER is willing to pay his fees) rules are set at the beginning of the loan. Nothing is left to the arbitration of one party. On the opposite side by forbidding liquidation in case of value drop you introduce a risk factor which is, of course, inacceptable to the serious investor.
If btc value drops to a third of itself from the time when I start the loan while the collateral increases in price above that, do I somehow have the right to demand that the lender send the extra amount be sent?
Of course you do.
It's too bad some people simply cannot see past their juvenile understanding of how negotiations work
I understand that talking like this may provide some relief but do you really think that this will make things change? Three users have already called you on this practice, this approach defies every logic in the margin trading market. Professional services like BitFinex which, your words: "operate in these manipulative and volatile market" use EXACTLY the approach we are describing here.
Also maybe your should control the war setting on your keyboard before posting.
ME, Eisenhower34 and another user express the same concept, so if my understanding of the issue at hand is juvenile so is theirs. Calling others juvenile when you are into crypto business for less than a year is.... well, insert appropriate term here.
