Silk Road forums
Discussion => Silk Road discussion => Topic started by: RootZero on August 04, 2012, 04:41 pm
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Just a couple of noob questions.
Had an incident recently where a vendor had my coins for 20 odd days in waiting, resolution etc, during which which the price lept up. He cancelled eventually. So my coins were worth way less than when I originally purchased. Shouldn't we be hedged against that with hedged orders?
Do the vendors get coins back if the order is hedged?
Also it left me the ability to leave feedback. Why should I leave feedback for an order that's cancelled? I can see a scenario where vendors boost their rating just by selectively not sending then cancelling orders to boost their ratings. The customer got their cash back so their probably gonna leave a 5* rating.
Am I way off track here?
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If the vendor had the listing hedged then you will receive the dollar amount of the listing in bitcoins using the current exchange rate. Example...
You buy X for $100 and the exchange rate was $5/Bitcoin. so you spent 20 bitcoins. Now the vendor decides to cancel your order, but Bitcoins are worth $10 each. So your going to get $100 worth of bitcoins 10 bitcoins. Half the amount of bitcoins but the correct cash value.
And on another note. Silk Road will take a 4% fee for the privilege of having your hedged order canceled. So you will actually get $96 worth of bitcoins.
You also get the option to leave feedback because you may leave valuable information for future customers. If the vendor was a dick about it, or was a great person that just had a package lost. Or maybe he never communicated with you. Leave feedback to let others know how the transaction went, even if it was canceled.
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I had the misfortune of not truly understanding how the hedging works and basically lost 150$ on a cancel due to a skyrocket in BTC price (when I cancelled), then a drop in BTC price. If I had waited to cancel at the "right" time, it wouldn't have been so bad. Part of me is really annoyed. SR is pretty sneaky and must make a ton of extra dollars from these types of situations.
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Yeah, the more I thought about it, the profit on those coins must have gone somewhere? ???
While I was happy I got my coins back without trashing my refund rate and I wasn't that bothered, it was a small order.
I looked through the feedback for the vendor and didn't see it or anything particularly odd. A few of those Will update... and blank feedbacks, but I guess all vendors get this sort of thing occasionally. There's lots of pages and I could have easily missed it (286 in 2 months :o ), so thinking this info might just be discarded and not counted towards their feedback? Was hoping an expert or vendor might explain what happens on their side when the cancel an order?
The vendor has a lot of positive feedback, been here 3 months, with good stats, so seems like a decent trustworthy vendor. First time anything odd has happened for me on SR, but sometimes wonder about these occasional little oddities. :-\
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Yeah, the more I thought about it, the profit on those coins must have gone somewhere? ???
While I was happy I got my coins back without trashing my refund rate and I wasn't that bothered, it was a small order.
I looked through the feedback for the vendor and didn't see it or anything particularly odd. A few of those Will update... and blank feedbacks, but I guess all vendors get this sort of thing occasionally. There's lots of pages and I could have easily missed it (286 in 2 months :o ), so thinking this info might just be discarded and not counted towards their feedback? Was hoping an expert or vendor might explain what happens on their side when the cancel an order?
The vendor has a lot of positive feedback, been here 3 months, with good stats, so seems like a decent trustworthy vendor. First time anything odd has happened for me on SR, but sometimes wonder about these occasional little oddities. :-\
Yea it looks like DPR is making a killing right now with the hedging option. He gets 4% for the service (even if the order gets canceled) plus if the price goes up he gets the extra coins. If the price doesn't fall more than 4% he makes a profit or breaks even.
Even the best vendors have problems. If you do enough shipping than a package is bound to get lost sooner or later.
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Anyone have any idea how long it takes to get BTC's after you cancel? I'm a buyer, not a seller.
Thaks,
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Anyone have any idea how long it takes to get BTC's after you cancel? I'm a buyer, not a seller.
Thaks,
It should be instant
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Hi folks, quick question on how long you think it's Ok to wait, or what is the SR 'norm' to wait before cancelling an order?
Story is, placed an order back on the 13th and seller messaged me to let me know order was dispatched via recorded and would be with by 1pm the next day, sadly the next day there was no package, none the next or any day after that so far. The order it self still shows just as processing and I am unable to get any reply from the vendor regards this order.
Now I don't want to be a c*nt about it, as I have used the seller before and he has always been more than decent with me up to this point. But neither can I just sit around with £150 of Bit Coins in limbo and nowt to show for it, there will come a point I have cancel the order if I don't hear but I was just wondering (as I've never had to cancel any order here before) what is the 'accepted' norm to wait here on SR before cancelling an order with a vendor?
Also if I do cancel, do I get the full amount back as reading some topics it says that 4% is lost yet some others claim otherwise. Just looking for some clarification really.
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That 4% is not a simple fee, when you place a hedged order your BTC are virtually converted to USD, and when the order closes by cancellation or finalization or resolution, they are converted back.
Any such conversion, real or virtual, will cost you the bid-ask spread, no matter where you go.
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Ah I see...hence then why some orders are in escrow in $ and others in escrow in Btc. Tidy as, was just looking for a concrete answer as I'd read some conflicting posts. Thank you kindly.
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Kinda sad to see DPR profiteering in this way, kinda goes against the 'SR ethos' imo.
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That 4% is not a simple fee, when you place a hedged order your BTC are virtually converted to USD, and when the order closes by cancellation or finalization or resolution, they are converted back.
Any such conversion, real or virtual, will cost you the bid-ask spread, no matter where you go.
I assume you are using Mt Gox to run the math. Why not just convert using one side of the spread both ways? e.g. use the "sell price" both ways.
Or use the midpoint between the spreads on any given day.
If these coins were being bought on the open market on the fly your explanation makes sense. But everything is kept in house and the conversions are all done in the SR system.