Say you convert when HIVE is worth $0.50 and HBD is worth $1.25 - that means HIVE trades at 0.40 HBD at internal market.
You convert HIVE into HBD expecting to get 0.475 HBD (for every HIVE that is kept from collateral) when you settle (if the price stays the same). It may end up lower (or higher) but as long as you get over 0.40 HBD (ie. price feed stays above 0.421), you are fine.
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