At this point, does the initial amount of HBD given at the beginning get deducted from the total calculated after 3.5 days?
That won't change.
What if, as you said, hive goes down significantly? I presume the algo won't ask for additional hive to be deposited.
The collateral amount is a bet by blockchain too. The blockchain asked for the double price as a collateral and won't ask for more HIVE if the price goes down too much.
Again, how can you pay more hive then what you deposited in the conversion? The amount is fixed. So you should get less HBD, not the same amount x.
You already paid double the supposed price for HBD! It won't ask more than that.
Yes, I now understand. I didn't understand the collateralized aspect when writing that comment. Again, thanks for taking the time to explain.
No problem. Thanks for the tip.