Thank you so much for this article, it made everything so much clearer for me. This article is also gonna be a tool for me to explain it to others. I was wondering can you please create an article or perhaps answer my reply with regards to margin calls? I still don't understand the way margin calling works with bitassets.

Like if I borrowed and sold 1 Hero at 1000 bts/hero at 3x collateral. Then let's say BTS went up and lowered the price to 500 bts/hero. Let's say I did not decide to sell at that point, however the next few weeks BTS went down and HERO price went up to let's say 750 bts/hero. I want to buy back but there were no takers at 750, the next one is around 1000. My question is, what would happen if I strategize to decrease my collateral to a point where I can get margin called at 750, perhaps at 1.5x. My thinking here is I'd rather get margin called than buyback at a loss if BTS price continues to go down.

My question is how does margin call works in this situation? How much will I lose? If my account gets margin called, am I essentially gonna eliminate my debt at the price point of 750bts/hero? Thereby giving me a 250bts profit still?

What happens when an debt gets margin called? I really don't get it still. Can you please explain it in an analogy that a 5 year old can understand?

Thank you in advance.