There is a fee for creating HBD but not the other way around. It's like a 5% loss on the amount of Hive you want to convert into HBD. Either way, I wonder if we will start coming close to reaching the haircut line and getting Hive at some point.
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Yes there is a 5% fee when converting HIVE to HBD. But that's the only way currently for huge amounts. For small amounts there are other ways. I don't qualify for huge amounts, so I have other, quicker and generally less expensive ways too. :)
We are currently at 2%, which is a joke to have 2% debt in an exponentially growing industry. Haircut is at 10%, but will be increased to 30% (that's the most likely new level). Unless we will have many whales come buy HBD (or HIVE price dive deep), we won't have a problem with the haircut for a good while. And if things are likely to move in that direction, the interest can be lowered by the consensus until things are rebalanced. Or the haircut will go in effect and there will be no tragedy, it has been enough times in the past. But then interest won't be paid until the debt ratio drops below the threshold, since no more HBD will be printed. Haircut going into effect would resolve the situation almost immediately, actually, since people would withdraw HBD and exchange/convert it to HIVE, then either power it up or move it to another stable coin. Either way, the debt level would drop almost instantaneously (in a few days I mean).