The price used at the beginning is the minimum price of the last 3.5 days.
Thanks for pointing that out, I thought it was the average median price.
So, you will get more than half of your HIVE back.
I know, after the complete trade. I was talking about the first part of the trade only.
For instance, right now HBD is trading at $1.17 and hive at $0.481.
Using the peakd conversion, converting 1 HIVE now, will provide me with 0.21 HBD instantly, and the rest later. Selling the 0.21 HBD for hive at the market price of $1.17 will result in me having 0.51 HIVE, not accounting for exchange fees.
The other half of the trade is a gamble, because we don't know where HBD will be trading in 3 days.
However, the first half of the trade is winning in the previous example. I converted 1 hive and got 0.51 Hive instantly for half the trade (0.5 hive). So that's a 2% gain guaranteed on the first half of the trade, and the rest is unkown.
I already don't love those odds. If the current market price of HBD was $1.14, the conversion would be losing for the instant trade. I would get less than 0.5 hive back instantly.
Therefore, the trade is not always winning when HBD is above $1.05. It is highly dependent on the lowest median price of the last 3.5 days.
In order for me to be willing to take the risk on that trade, the instant payoff has to be very high, to justify the risks of losing on the second half of the trade as well, if HBD trades below 1$, or if the hive market price is far from the average median price.
We cannot assume that HBD will remain at $1.17 for three days.
The first half of the trade also will get recalculated after 3 days taking to account the median price, not the minimum price.
So, if the price of HIVE stays stable for the next 3 days starting from now, you get the HBD exactly at the rate of $1.05.
Oh wow, that's actually a great feature. Thanks for the info, this should be explained in the peakd faq in the convert window.