Voting

Users can vote on various parameters for a margin market.

Protocol

Each vote last for a given duration (this duration is voted on) and each vote proposal has three options; Increase, Decrease or Preserve. At the end of the given duration for each proposal, the option with the most votes is picked as the winning option. Then, based on what the proposal was referencing, a parameter is updated - It is either increased by x% decreased by x% or preserved at it's current value.

Votes to preserve hold 1.5x the amount of weight as votes to increase or decrease. Each time a vote is increased or decreased a new baseline vote is calculated. The value of the baseline vote is 90% of the winning decrease/increase vote; This baseline vote is used as the default value of the preserve vote each time a new proposal is entered. If the winning vote is to preserve then the baseline vote is not updated.

The baseline vote ensures that there will always be a sufficient amount of votes for each proposal and helps prevent the "voting incentives" problem. The baseline will decrease only if the winning vote is less then 1.1x the baseline vote.

The following parameters can be voted on:

• Initial Margin - The min initial margin requirement for each position

• Maintenance Margin - The maintenance margin requirement for each position

• Interest Multiplier - The multiplier used on the util rate to calculate the interest rate

• Max Borrow Amount - The max amount of borrows that can occur in a single block relative to the funding pool size.

• Max Liquidate Volume - he max amount of liquidations that can occur in a single block relative to the funding pool size - The first liquidation in the block ignores this amount.

• Voting Duration - The duration for which each voting proposal lasts.