Auger - a decentralised derivatives market

[Gilgongo]

While I know derivatives aren't exactly TLF territory, I thought this might be of passing interest to some of us:

https://medium.com/@AugurProject/augur- ... dda65a3e3d

I've been following Auger for a few years now and for while played about with beta, but didn't participate in the crowd sale - perhaps I should have!

Anyway, it's quite interesting that they're aligning on financial derivatives now.

[odysseus2000]

One of the things I don't really get about these types of idea is how you instill user confidence.

If e.g. you enter a trade with a limit order & then find the trade occurred well above the limit, who would you complain to? Sure you can complain to Auger, but if you get into loggerheads with them who would you then complain to?

Similarly, if there is fraud, in your opinion, say suddenly 10% of your account goes missing who would you complain to beyond Auger if you get no satisfaction with them.

Another aspect of Auger is the use of derivatives & how vulnerable a derivative player is to market manipulation via e.g front running, stop running etc.

Then one turns into the intended punters. Most private investors are not sophisticated enough to deal with derivatives such that for Auger to have good turnover it needs professional traders & how many firms would want to move to Auger even if there are many attractions.

I could be missing the plot here as I have with bitcoin, but these kinds of things, especially when promoted by the hyped stuff linked to in the opening post make me to nervous to want to touch them. Certainly a huge mistake re bitcoin, but I have slept at night.

Regards,