Silk Road forums

Discussion => Newbie discussion => Topic started by: budsbutters888 on August 22, 2013, 08:54 pm

Title: Victim of Hedge
Post by: budsbutters888 on August 22, 2013, 08:54 pm
So is there anything I can do to get back the amount of BTC I originally paid for an item that the vendor ended up cancelling?  Sorry if the topic is already posted somewhere, I'm still rather new to this.
Title: Re: Victim of Hedge
Post by: tracer289 on August 27, 2013, 06:33 pm
Good question.
The same thing happened to me this morning.
Look at this;
purchase    transaction #9c07a0d9e6    ฿-5.80    ฿2.92    August 26, 2013, 11:04 pm UTC (purchased for 5.8BTC)
refund    transaction #9c07a0d9e6    ฿5.25    ฿5.38    August 27, 2013, 11:23 am UTC (refunded 5.25btc)

I placed an order. 12 hours later the vendor cancels the order claiming his product is bunk. I get a refund minus .55 BTC
WTF?!?!?   Is this how hedging is supposed to work?!?!
Title: Re: Victim of Hedge
Post by: TSCrew on August 27, 2013, 06:40 pm
What happens if vendors does not hedge is this.

You put in an order when BTC is $100=1 for .44 BTC, so in essense your .44 BTC is worth $44. If the vendor Hedges then no matter when you release funds or if they cancel you or the vendor would get back $44.00.

Now if they are not hedged and when you buy the BTC is $100=1 and you bought for .44 BTC, then if you release funds or they cancel and now the BTC is only worth BTC $50=1 your .44BTC is only worth $22. And same thing with if you went through and finalized.

Now you ask why wouldn't a vendor hedge? Well in the instance that they think BTC's are going up.

If they hedge and when you first bought 1BTC=$100 and you bought .44, then you finalize and 1BTC=$200 then that .44 BTC would give the vendor $88 if they didn't hedge but if they hedged they would only get $44.

Make sense?
Title: Re: Victim of Hedge
Post by: TSCrew on August 27, 2013, 07:13 pm
let me know if you have any other questions  8)

And if your ever looking for some great Spanish products (Weed, Hash, and SR's best Opium) check out:

<Our Vendor account>
silkroadvb5piz3r.onion/silkroad/user/9de2239028