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[Proposal] Margin Trading and Minimum Volume

Author
Syri Taneka
NOVA-CAINE
#1 - 2012-02-26 15:38:45 UTC  |  Edited by: Syri Taneka
Just recently I noticed a buy/sell (Margin Trading) scam in progress and decided to have an underhanded go at it. Quickly amassing the proper number of items in an outside market at a normal price, I flew them over to drop on the buy order. And it failed. Why did it fail? Because the amount of ISK in escrow was lower than the value of the minimum buy order. What this means? The buy order was intentionally rigged to fail. Knowingly and intentionally placed despite the fact it could never be filled.

This issue has been discussed to death, but there's a pretty quick and logical solution to it, one that inconveniences legitimate users only a little, and absolutely ruins the unwatched buy order scam (repeat, this does NOTHING to the cancelled buy order variant of this scam). When placing a buy order, the Margin Trading skill allows players to place less than the total amount of ISK in escrow (100%, 75%, 56.25%, 42.19%, 31.64%, 23.73%). What I propose is that this number be compared to the ISK value of the minimum volume for the buy order (if any) and the higher value used for the amount in escrow.

Under this process, legitimate users of the Margin Trading skill can still place buy orders with minimum volumes - one way or another, enough ISK to cover the minimum purchase amount will be placed in escrow.

For scammers, this means that placing an order of, say, 500 units with a minimum volume of 500 units will require 100% of ISK to be placed in escrow regardless of Margin Trading skill level, eliminating the possibility that the order cannot be fulfilled by legitimate in-game means. (As noted, this does not stop buy order cancellation scams, only those that rely on the order automatically breaking when it can't be afforded from the placer's end.)
mxzf
Shovel Bros
#2 - 2012-02-26 15:59:31 UTC
Crossposting is frowned upon; I expect this topic to be locked once a mod notices that you posted this thread in both here and the F&I forums.
Syri Taneka
NOVA-CAINE
#3 - 2012-02-29 17:29:50 UTC
mxzf wrote:
Crossposting is frowned upon; I expect this topic to be locked once a mod notices that you posted this thread in both here and the F&I forums.


I was told to by the GMs!
Vertisce Soritenshi
The Scope
Gallente Federation
#4 - 2012-02-29 20:01:54 UTC
The overall idea is to post in F&I first. Get a general feel of how people will react to the idea and if it will actually garner support and then post in Assembly Hall when you think it might succeed. If people like the idea and assuming the CSM members are doing their proper job and reading Assembly Hall posts, it will be seen and forwarded to CCP if deemed worthy. Either way this has been beat to hell in the past and I believe several working options have already been submitted to CCP. Whether they do something with it or not is up to them.

Bounties for all! https://forums.eveonline.com/default.aspx?g=posts&m=2279821#post2279821

Gizznitt Malikite
Agony Unleashed
Agony Empire
#5 - 2012-02-29 21:34:17 UTC

While this will make the margin trading scam a "little" less profitable, a "little" more tedious to setup, and require a little more funds on behalf of the schemer, it will not in any manner prevent the margin trading scam.

This is because funds are first withdrawn from escrow, and then drawn from your wallet.

Essentially, rather than buy all the units in one transaction, I can set it up to buy all the units in two transactions.... Then I just sell the units to myself to clear out the escrow, and then I put those units for sale.....

This will double the "fees" associated with setting this up, but that's not going to stop the margin trading scam!
mxzf
Shovel Bros
#6 - 2012-02-29 23:00:32 UTC
Gizznitt Malikite wrote:

While this will make the margin trading scam a "little" less profitable, a "little" more tedious to setup, and require a little more funds on behalf of the schemer, it will not in any manner prevent the margin trading scam.

This is because funds are first withdrawn from escrow, and then drawn from your wallet.

Essentially, rather than buy all the units in one transaction, I can set it up to buy all the units in two transactions.... Then I just sell the units to myself to clear out the escrow, and then I put those units for sale.....

This will double the "fees" associated with setting this up, but that's not going to stop the margin trading scam!


Not if the system pops the order once you no longer have the funds available to fill the minimum buy order.
Antigena
Opportunity Cost
#7 - 2012-03-04 10:15:15 UTC
I can see this as a real problem that is having game-breaking real-world negative impact on players and seriously needs a real solution.

I realize this thread is not very many days old, but reading here I think this deserves some good discussion. Also I realize I'm new to the forums but I think I may have some good ideas about this.
Antigena
Opportunity Cost
#8 - 2012-03-04 10:25:44 UTC
I think someone in the other thread was basically on the right track when they interpreted what the OP said in a slightly different way, where instead of:

"if your minimum amount is 100% of the quantity of the order then you have to put 100% of the isk up for escrow regardless of your margin trading skill level" (thinking of it this way seems to break the point of having margin trading)

it is actually:

"the minimum amount cannot be set to an amount that would be worth more than the amount of isk you put up for escrow."

This simple semantic difference in the interpretation of the proposed solution much more obviously does not break the margin trading functionality, AND it doesn't allow for this catastrophic game-ruining flaw to harm the customers in a game-mechanic sanctioned way.

(it's not like you were gullible and trusted a player saying something rediculous in a chat, you trusted the in-game market mechanics that are supposed to be the method that prevents you from harm - the very thing that you are SUPPOSED to trust. but then that very system is what harmed you. it was not the other player who scammed you. it was THE GAME itself that scammed you on behalf of the other players wishes. That right there is the very difference between a legitimate scam and a straight-up sploit.)
Antigena
Opportunity Cost
#9 - 2012-03-04 11:57:53 UTC
Having the system kill the order if you no longer have the funds available seems like a good idea at first...

But i think the whole point of doing margin trading is so that you CAN buy things without having the money, or rather not directly "buy things" but "place buy orders".

I think the problem here is with the resolution of an order that is being fulfilled when it was a margin trade. To let people spend so much time and money going around to collect up a saleable cache of items in response to a buy order, only to have that buy order killed because the buyer didnt have enough money, thus causing all the harm to the player who thought they were engaging in a trustworthy activity is just poor design.
Antigena
Opportunity Cost
#10 - 2012-03-04 12:25:11 UTC
So now, if the existing method isn't reasonable, we get into a discussion of "how do we properly resolve margin buy orders that get fulfilled when the buyer doesn't have enough money to pay for it?"

How about, the seller sells the items, and gets the money, just like they deserve to for going through all the hard work to fulfill the order.

Then, the buyer gets the items FOR WHICH THEY PAID THE ESCROW, and FOR WHICH THEY HAVE THE WALLET FUNDS... As for the rest of the items, well, those go into some sort of post-order escrow limbo.

Then, in order for the buy order to serve it's PURPOSE of buying things, and in order for the margin trading to serve it's purpose of buying those things without having the money, the MOMENT the buyer (who of course didn't have enough money to pay the buy order and is therefore sitting at a balance of 0) gets any isk at all, it AUTOMATICALLY goes into the limbo order until they reach the point where the order is fulfilled and the items are taken out of limbo and delivered to the buyer.

This way, the main that does this can never do anything else until they fulfill the very responsibility that they have ordered to be required to fulfill when they placed the order in the first place. Thus forcing them to live up to the responsibility they agreed to take on.

Then if people try to find ways to exploit this method, it can be dealt with by having limbo items only last a certain time. say 30 days, and the items go out of limbo and up for general sale at the location where they are, for the amount of money that was paid to the seller for them. That way the items go into the game, the isk eventually goes back into the game, and no one gets hurt in the process. and that can give rise to another skill that allows you to extend the amount of time by so much each level, etc.

So in that case, if an alt tries to do a margin buy order and ends up leaving a whole bunch of items in limbo, and that alt gets biomassed, all that has to happen is those limbo items instantly go up for sale. or just say "sorry, you cannot biomass this character at this time because it has outstanding buy orders" or something like that.

every proposed solution has the potential of being exploitable, so the developers would have to figure out how to do it right.

trouble is, ANY time you allow people to buy things without actually having the money for it, you get into dangerous territory, unless you FORCE them to pay ASAP.
Antigena
Opportunity Cost
#11 - 2012-03-05 00:29:03 UTC
perhaps issues and workarounds would be a better place to discuss the margin trading / market buy orders problem...