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35 changes: 35 additions & 0 deletions baip-0010.md
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```
BAIP: 0010
Title:Set Margin Call Fee
Authors: bitcrab
Status: Draft
Type: Consensus
Created: 2020-9-1
```
### Abstract
This BAIP propose to set the Margin Call Fee Ratio of the 3 main bitAssets bitCNY, bitUSD, bitEUR based on the implementation of BSIP74 in BTS4.0.

### Motivation
As described in BSIP74, margin call tradings are potential to contribute a big part of the income to the system, and the fee can be regarded as the cost for stabilization of bitAssets.

### Rational
This fee ratio will modulate the Maximum Short Squeeze Ratio (MSSR) when determining the Margin Call Order Price (MCOP):

`margin_call_order_price = median_feed_price / (MSSR - MCFR).
`
### Specifications
Set Margin Call Fee Ratio as below:

bitCNY: set MCFR = 1%, MSSR = 1.02

bitUSD: set MCFR = 1%, MSSR = 1.02

bitEUR: set MCFR = 1% (MSSR is already 1.02)

### Explanation
While MSSR = 1.01 and MCFR = 1%, `margin_call_order_price = median_feed_price / (MSSR - MCFR) = median_feed_price`, this is not suitable for a margin call order as margin call order price should always be obviously lower than the median feed price, that's why here set the MSSR = 1.02.

To set MCFR to 1% is based on the consideration to "make obvious effect and little pain", surely the value can be adjusted based on the practice in the future.

### Copyright
This document is placed in the public domain.