Joe, in my experience Chalice corals won't show a white edge say like some Monti's and Acro's do. They normally should be covered in the flesh. Low Ca, Mag should not cause this so soon, IMO. Salinity, I keep my stuff at 35ppt or 1.026 SG, I don't know if this could be an issue or not, I used to run lower SG when I first started reefing, I always had mixed results with things, usually most LPS were fine, but didn't really grow all that much, I never had any Chalices' back then, I did try a couple SPS back then and they never made it more than a couple of months at the most. What is your Temp.? I don't think the small level of Nitrate would do this either so soon. Sorry, I don't have a definitive answer for you, plus I'm not real big on Chalice corals, I know they are all the rage these days. I have two now that Darin fragged, and they are in lower light area, but receive the same flow as all my Acros, they both are doing very well(knock wood), the colored eye one I have could stand to be moved to some more light I think. Hopefully you can find out what is with this piece and what it likes for it to grow for you. Good luck.
Matt