> For the complete documentation index, see [llms.txt](https://docs.honeychat.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.honeychat.app/maths/shorting.md). # Shorting ## **Dynamic Valuation & The Price Discovery Dilemma** Honey Chat allows users to bet on their peers' decline in popularity. This not only enriches the platform with **financial strategy** but also mirrors the transient nature of real-world **social standings**. It's all about **quantifying** the worth of **social interactions**, **content**, and **influence** *in real-time*. Here is Bera Grylls explaining shorting using **Charts** and **Keys** below. He also uses **Pictures** and **Stories** for those who (ahem) prefer to digest information via children's parables.
### 1. Little Jimmy Bera goes a-shorting:

“In this scenario, Little Jimmy Bera shorts 10 passes with a starting supply of 100 passes. As a result, the supply decreases to 90 passes after his short. Being a bear of very little brain, he sets a minimum safety margin of 5 passes. So he provides collateral for the passes from 90 to 105. If the pass supply reaches 95, Jimmy Bera will be subject to liquidation... and thus. . . rekt-age. He could adjust his safety margin at any time, but he instead chooses to live dangerously.”

### 2. Little Jimmy Bera goes a-winning:

“Here, Little Jimmy Bera decides to close his short after the pass supply has reached 75. His collateral is used to buy back the 10 passes he shorted and the pass supply adjusts to 85. Jimmy Bera receives the full amount of his collateral back plus the original basis of his short minus the cost of the 10 shares he bought back. Little Jimmy Bera swells with pride and social signals his good fortune via a public post."

### 3. Little Jimmy Bera gets a-rekt (minds outta the gutter; this is for kids):

“Here, Little Jimmy Bera is liquidated after the pass supply rises to 95. With sad little teardrops dampening his face, Jimmy Bera watches as his collateral is used to buy back the 10 passes he shorted and the pass supply returns to 105. Jimmy Bera receives the remainder of his collateral after the amount needed to purchase passes 90 to 95 has been deducted. He numbs his pain by binge watching Cake Boss. It is a sad day for Little Jimmy Bera.”