Silk Road forums
Discussion => Silk Road discussion => Topic started by: stinkybuns on April 18, 2013, 03:02 am
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is the escrow here at SR hedged or not? if it isn't, how would vendors be able to stay in business? on the same topic, how about at BMR? When your bitcoins are held in escrow over there and in the meantime the price of bitcoins crashes, does that seller lose their shirt?
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I believe on SR the vendor chooses whether or not his listings are hedged. BMR on the other hand has absolutely no hedging or fluctuation protectiong.
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is the escrow here at SR hedged or not? if it isn't, how would vendors be able to stay in business? on the same topic, how about at BMR? When your bitcoins are held in escrow over there and in the meantime the price of bitcoins crashes, does that seller lose their shirt?
Why didn't you just consult the SR Wiki? ???
SR Wiki:
http://dkn255hz262ypmii.onion/wiki/index.php?title=Main_Page
SR: Seller's Guide, escrow hedging section:
http://dkn255hz262ypmii.onion/wiki/index.php?title=Seller%27s_Guide#Escrow_Hedging
Escrow Hedging
Unfortunately, the Bitcoin exchange rate isn't as stable as we would all like it to be, and can fluctuate wildly in a matter of hours, let alone the days or weeks it takes for a package to arrive. Because of this, there is a real danger that the Bitcoins being held in your escrow account will lose value by the time your customers finalize their orders. So, we've given you the option to hedge the future payments you are expecting from escrow such that the dollar value of the payment doesn't change as the Bitcoin exchange rate changes.
For example, someone purchases one of your 10 btc listings. The dollar value of the order when purchased is $100. Now, a week later when the transaction is finalized, those 10 btc are no longer worth $100, they're worth $50! Because you hedged the escrow, you won't get paid 10 btc, you'll get 20 btc equaling the original value of $100. Of course, the opposite is also true. If Bitcoins appreciate in value while your payment is in escrow, you'll get fewer Bitcoins, but they will still equal the original dollar value.
The option to turn off or on escrow hedging can be found on your "settings" page. While it is on, the payments for any orders placed with you will be hedged. Payments for orders placed while it is off will not be hedged, but any hedged orders still not finalized will remain hedged.
On your account page, your escrow balances are split up between hedged and unhedged orders. All orders are hedged as soon as they are placed and unhedged as soon as you are paid.
You can expect a loss of about 4% of your normal payment when using the escrow hedging feature. This is due to the fact that, both when hedging and unhedging, you will lose the bid-ask spread between the available orders that can be used to fill your hedging order.
If you need the most up-to-date USD/BTC exchange rate, we recommend mtgoxlive.com.
You should really read it in its entirety if you have questions such as the one you posed in the original post.
- grahamgreene
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is the escrow here at SR hedged or not? if it isn't, how would vendors be able to stay in business? on the same topic, how about at BMR? When your bitcoins are held in escrow over there and in the meantime the price of bitcoins crashes, does that seller lose their shirt?
Why didn't you just consult the SR Wiki? ???
SR Wiki:
http://dkn255hz262ypmii.onion/wiki/index.php?title=Main_Page
SR: Seller's Guide, escrow hedging section:
http://dkn255hz262ypmii.onion/wiki/index.php?title=Seller%27s_Guide#Escrow_Hedging
Escrow Hedging
Unfortunately, the Bitcoin exchange rate isn't as stable as we would all like it to be, and can fluctuate wildly in a matter of hours, let alone the days or weeks it takes for a package to arrive. Because of this, there is a real danger that the Bitcoins being held in your escrow account will lose value by the time your customers finalize their orders. So, we've given you the option to hedge the future payments you are expecting from escrow such that the dollar value of the payment doesn't change as the Bitcoin exchange rate changes.
For example, someone purchases one of your 10 btc listings. The dollar value of the order when purchased is $100. Now, a week later when the transaction is finalized, those 10 btc are no longer worth $100, they're worth $50! Because you hedged the escrow, you won't get paid 10 btc, you'll get 20 btc equaling the original value of $100. Of course, the opposite is also true. If Bitcoins appreciate in value while your payment is in escrow, you'll get fewer Bitcoins, but they will still equal the original dollar value.
The option to turn off or on escrow hedging can be found on your "settings" page. While it is on, the payments for any orders placed with you will be hedged. Payments for orders placed while it is off will not be hedged, but any hedged orders still not finalized will remain hedged.
On your account page, your escrow balances are split up between hedged and unhedged orders. All orders are hedged as soon as they are placed and unhedged as soon as you are paid.
You can expect a loss of about 4% of your normal payment when using the escrow hedging feature. This is due to the fact that, both when hedging and unhedging, you will lose the bid-ask spread between the available orders that can be used to fill your hedging order.
If you need the most up-to-date USD/BTC exchange rate, we recommend mtgoxlive.com.
You should really read it in its entirety if you have questions such as the one you posed in the original post.
- grahamgreene
The problem is that even the Wiki guide doesn't spell it out for those of us with learning disabilities. Sample should be provided; i.e., if your item is X value and you had it listed as "hedged" then you will get x value when it is finalized if the bitcoin is worth less you will get ..... ?? ?? OR if same item was X value and when it was finalized and the bitcoin was worth more you will get .... ?? ?? that is what we need! No, I'm not kidding about dyslexia, please keep your smart peoples attitudes to your selves. It may be hard to believe when one reads the cruel and pointless attacks on people in here because they are ..... not up to your expectations. Gotta grow up sometime people! Avoid the "Mean Girls" desease if you can - this is NOT high school.
Thank you!
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SIMPLY ..... when you make an order (and DONT FE) your $'s stay "in escrow"
which means that they are "held" by TSR who only 'release' those (your) $'s only once you have "approved" the product by Finalizing
By doing this, BOTH they vendor and buyer are placing their trust in the SR's system . . which clearly works Or we wouldn't be here!
The "amount" you have paid for the product, "once the order has been accepted and from 'processing' on to delivery" ... WILL STAY THE SAME ... the 'price' will not change!
IF you are 'worried' about things like a vendor not 'hedging' their orders .... ask them If they do? All good vendors will be happy to help/tell you
IF the package doesn't show up . . . you can then request a 'Resolution' (which are fairly uncommon, esp compared to the 'successful' deliveries)
I hope this helped . . . Please everyone . . at least TRY and DO some Research . . . IF you ARE STILL having major problems . . . shoot motek a pm she'll see what she can do ; )
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The problem is that even the Wiki guide doesn't spell it out for those of us with learning disabilities. Sample should be provided; i.e., if your item is X value and you had it listed as "hedged" then you will get x value when it is finalized if the bitcoin is worth less you will get ..... ?? ?? OR if same item was X value and when it was finalized and the bitcoin was worth more you will get .... ?? ?? that is what we need!
[SNIP]
You do raise a very valid point, M n P Stuff; a point I neglected to take into consideration and I apologise to all that may have read my response for seeming so blunt. I do not have a learning disability myself (making it hard for me to see from someone with a learning disability's point of view), but a number of people very close to me are dyslexic so I do understand where you're coming from. The SR Wiki was not written with such people in mind, but instead was written to appeal to the understanding of the greater majority.
Examples should of course always be provided, however in the excerpt I posted above, an example is provided:
For example, someone purchases one of your 10 btc listings. The dollar value of the order when purchased is $100. Now, a week later when the transaction is finalized, those 10 btc are no longer worth $100, they're worth $50! Because you hedged the escrow, you won't get paid 10 btc, you'll get 20 btc equaling the original value of $100. Of course, the opposite is also true. If Bitcoins appreciate in value while your payment is in escrow, you'll get fewer Bitcoins, but they will still equal the original dollar value.
Perhaps it could have been laid out a little better, but the fact that it is laid out at all is more than should be expected given the type of marketplace we are operating within.
As for:
No, I'm not kidding about dyslexia, please keep your smart peoples attitudes to your selves. It may be hard to believe when one reads the cruel and pointless attacks on people in here because they are ..... not up to your expectations. Gotta grow up sometime people! Avoid the "Mean Girls" desease if you can - this is NOT high school.
Thank you!
The majority of dyslexic people I know are smarter than the average person in an intelligence sense. I have not seen any "cruel and pointless attacks on people in here" simply because they cannot understand something that for many can often be confusing; I have, however, experienced members (including myself) becoming incredibly frustrated at answering the same questions that have been answered numerous times before in many threads and on the Wiki itself.
People get frustrated not because others do not understand, but because others fail - for the most part - to actually read the information that is already available to them, just a few clicks away. I do not have any expectations of others here, except that they read and attempt to understand the information presented to them. If they continuously have problems doing so then I am always more than willing to help them out. However, if they are simply too lazy to click around or do a simple search, I have absolutely no time for them.
I will attempt to view things from the perspective of others in future before responding to questions such as those put forth in the original post. It remains my opinion though, that the author of said post was simply not bothered to read through the Wiki, nor search the forums to find the information that they were looking for.
- grahamgreene