VALKRAN EXCHANGE The purest form of price discovery is perfect knowledge of the last price something was traded at, how much people are willing to buy at, and how much people are willing to sell at. This initiative is a player-run enterprise which is designed to be more accessible and much more competitive than the traditional broker system in Nave. The way it works is relatively straight-forward. Gold or commodities are deposited and credited to an account. The account holder will be able to do the following: Place an order to buy a commodity at a particular price Place an order to sell a commodity at a particular price Fill somebody else’s order to buy a commodity at a particular price Fill somebody else’s order to sell a commodity at a particular price Anybody who places an order on the exchange is considered ‘adding liquidity’ to the exchange. Anybody who fills an order on the exchange is considered ‘removing liquidity’ from the exchange. This is important in the fee structure, which will still remain competitive. Fees There are no costs to deposit gold and commodities into one’s account on the exchange. This can, currently, be done from any blue town in Myrland. To place an order to buy or sell will also incur no costs, you merely require that the gold or commodity has been cleared into your account, to change the order also incurs no fee, either. for example, if you put a sell order for 1 stack of steel at 300 gold, you may change this to 280 gold at no extra cost. Once any part of an order is filled, then a trade has occurred, which incurs a fee. The overall fee is 1% and this is divided up as follows: The one who added liquidity is charged 0.3% The one who removed liquidity is charged 0.7% Please note that the fees have been waived for the time being to aid the bootrapping of this idea. The fees may change, but if the do, there will be a public announcement of the change in fees in a new thread. And 4 weeks notice shall be provided beforehand. The reason for this division is that we felt those that added liquidity deserve to be rewarded as it provides a necessary service to all Mortals. Although the exchange itself is virtual, in nature, for accounting purposes, all stock and money will be held in Bakti. Should an account holder wish to withdraw gold or commodities, there would be no charge if the amount was withdrawn in Bakti. Should the account holder wish to receive the gold or goods in another city the following transfer services can be used: Valkran Gold Transfer Valkran Steel Transfer Process At the moment this will be, mostly, an experiment to test the waters. I anticipate that the uptake for this idea is going to be slow, if at all, and so I do not feel this warrants a website yet, although, ideally, this is the direction I would like to head in. At the moment I will handle everything via PMs on the forums. The PMs will be used to perform the following actions: Organise deposits and withdrawals Provide statements of account Place buy orders Place sell orders Fill buy orders Fill sell orders Should the admin become heavy, then I would consider making things a bit more fluid by seeing if I can create a website for this. Advantages to the Current Broker System There are a number of advantages we feel traders would gain from using this service rather than the in-game broker system: 1 - Transparency All orders will be listed on the orderbook, so that people can see at any one time how much liquidity exists on the exchange. My intention is to collect pricing data and have this publicly accessible as a price graph so traders can see the trends in price differences 2 - Accuracy Using the current system the people who place buy orders can only place it to the nearest 1 gold per stack. This means that the level of competition is extremely low. This exchange will operate to the 8th decimal place for stacks and gold (fees will be rounded up). 3 - Cheaper Of course, placing buy orders is free and filling them is free using the current system, but for sellers the current system incurs a 5% fee and with certain specialist knowledge can be brought no lower than 2.5%. This exchange charges less than 1% and is available to anybody so there is no requirement to waste primary points on the negotiation-based skills 4 - Ease Although placing buy orders are free using the current system, it can be a laborious task as the maximum you can place on the broker is 8 stacks per order. This clogs up the broker with hundreds of orders from the same person who is looking to buy in bulk volume and is also time-consuming for them placing it up in the first place, too. 5 - Fungible Buy orders can be partially filled without problem and so are fungible. However, currently, when placing sell orders, they must be filled in its entirety or not at all, meaning the desired, exact, quantity may not be available 6 - Longevity Again, buy orders do not have a lifetime, whereas sell order can only be placed up on the broker for a maximum of 10 days. The fee is paid immediately, and the item may not even get sold, so there is a risk. This exchange only charges for when trades are executed, listing is free. Well that is about it for this. At the time of writing we feel that the most liquid commodity out there is steel, and that so many other commodities derive their value from the value of steel. So, for now, this exchange will deal, exclusively in steel. Hopefully as the exchange becomes more liquid, I can draw in traders and speculators alike. 7 - Reliability The current broker system has been known to be riddled with defects (all being fixed by SV, of course with our support) But nevertheless, there may be risk of placing 1000 gold in buy orders for steel, and having the broker swallow your money, but place none of the buy orders. The mail and trade systems appear to be functioning correctly, and this would be the basis of deposits and withdrawals where all trading takes place virtually and is manually checked to ensure the data remains with as much integrity as possible. May the Profit be with you all!