Bitcoin Forum

*Audits

And you guys aren't the first savings service, there's already HaoBTC. How are you any different, and from where do you get the income to pay for the interest?

As explained above, the interest comes from the trading platform. We differ from HaoBTC in that we provide 100% reserves, operate with no hot wallets and are UK-based.

So you use the coins to trade and the profit from that pays the interest? Sounds like a bad idea if true.

If I had to guess, I would guess that they use a portion of the fees, generated by the exchange, as interest.

Yes. As stated for the third time, the interest comes from the trading fees :D

Well, it's not explicitly stated in the OP that you use trading fees, just that the interest rate differs based on the activity of your exchange, so I kinda get the confusion. It is explicitly stated on your website, but not everything reads that.

Anyway, this seems pretty cool and I might give it a shot.

Hi its Joe here, founder of BTC.sx.

Our intention is to make this as transparent as possible. On-blockchain calculations for deposit and interest calculations are part of the way we are doing this.

By offering this service our goal is to build more reputable financial services for Bitcoin. My hope is that this is just the beginning of a much wider movement.

What is the ETA on 2fa support? Just seems kinda dumb to me that I can login to my btc.sx account with 2fa but to login to my magnr account with the same password no 2fa is required

edit: also I have to ask what the logic is behind limiting interest to 10btc. Just anyone can create a second account with minimal effort needed.

this is very important. could you please elaborate?

So what you're saying is that this isn't for profit, right? You're JUST doing this to help progress Bitcoin?

Our Multisig technology is provided by Bitgo. We own a private key to sign transactions, another backup private key and then BitGo own the third private key. Based on customer feedback on Reddit, we hope to give users the option to own a private key down the road. The hierarchical wallet structure allows us to better manage our deposits by backing up the seed wallet to prevent other wallet backups being invalidated.

I hope this covers everything, but let us know if there any more specific questions that come to mind. 

Keeping an eye on this service for journalistic purposes :)

great, thank you! if you find a solution to give users their private key I'm in!

Interesting. I'll be watching to see how this turns out. Could be a scam in the making. I hope not.

Unfortunately it is on our list of priorities but we haven't been able to have this ready in time for launch. We hope to have it ready as soon as a few other post-launch priorities have been deployed.

We will be implementing AML/KYC down the road - this will make it harder to run second accounts. For now, the 10 BTC limit is to ensure that we don't get flooded with too many Bitcoin. This is really just a very prudent precaution as we have no data to predict the likely demand for Magnr.

The benefits we gain from Magnr are increased publicity and awareness. We are currently considering various options to monetize Magnr in the future. Our business model ensures that for every one bitcoin deposited, at least one bitcoin can be withdrawn.

Awesome! You can email me at josh.blatchford(at)mangr.com if you have further questions.

Interesting, I will deposit some bitcoins and give it a go.  Just wondering, has anyone in the UK actually been to their office location mentioned on the "Contact Us" page?

c/o Capco | 77-79 Great Eastern Street, London, EC2A 3HU, United Kingdom

Capco (http://www.capco.com/) seems to be a company that does a lot with banking and the like, but I can't find any references to Btc.Sx or Magnr on their website. Strange.

So AML/KYC will be required in the future for all withdrawals?

Got it. I do worry about losing BTC due to a hack, though (especially with just how many sites ARE being hit). Is there any special precaution that's being taken to keep this from happening? And is there any insurance on the deposits, in case something does happen?

They kindly have let us operate out of their space by their BoldRocket CEO.

We are open to visits if you email us in our support centre. Lets make this happen :)


*edit* the remit of BoldRocket is to revolutionise the banking industry. They are essentially the innovation arm of Capco.

Ah, I see. That explains everything, thank you. I would love to come visit, but the UK is a bit too far for me. :P

And here is what the account screen looks like.

https://i.imgur.com/ylTQwGu.png?1

Our stance is to rebuild financial services from the ground up. We've taken our collective experience from the field of banking and finance and want to make Bitcoin the #1 currency in the world.

The financial services and banking industry has never had a worse reputation. We hope to change that by speeding up the digital currency revolution.

London has been the global hub of financial services for decades. By being based here, we get access to both the traditional finance industry and leading regulators too (which we are hoping influence in a positive way).

If anyone else would like to visit us and share a morning coffee, you are more then welcome.

Please email us on support@btc.sx or PM me (or the user Magnr)

Join us in 2 hours for an 'Ask Me Anything' session at https://www.reddit.com/r/bitcoin

We are also speaking on the Whaleclub team speak (https://www.whaleclub.co/live) server in 9 hours. We will be answering all your questions about Magnr and our team.

more questions: where can I change my password? where can I enable 2fa?

That functionality is being pushed into production this week :). (the underlying infrastructure already exists on BTC.sx, we are in the process of enabling it for Magnr.com)

and I noticed a 24 hours withdrawal delay. is there a plan to speed this process for smaller amounts?

Just pointing out a small bug (for me): If you fail login the first time on the login page, and the next time you enter the correct credentials, you won't be able to login as for the error message pops up: "ReCAPTCHA failed" or something like that.  The box for the captcha is still check marked. I have to refresh the page and reselect the box in order to log in.

Edit: Nevermind, it's working completely fine now...

Hi favdesu,

Not at this stage. Our reason behind it is that firstly we do not want to run hot wallet infrastructure to maximise our security of client funds. Second to that we are keen not to promote the use of this investment service as a wallet. There are plenty of great wallet services out there and we would recommend our customers to treat the funds invested separate from a transactional balance and wallet. (much like you would in the fiat investment world)

mh, makes sense. thanks for answering my questions

June interest payments have been made for over 200 btc worth of Assets Under Management. Welcome to the new era of digital currency asset management :)

Bitcoin +1
Traditional Finance -1

Yes there are alot of login bugs currently, such as having to type a letter and then delete it, in order for it to see your password as correct, and the capcatcha thinking it isnt done

What does the daily interest rate work out to?
From the screen capture on $25 worth of btc he received $0.01 worth in 5 days.
After the promotion period ends, what will the interest rate be? Will it be variable or fixed as it is now at 2.18% until 2016?

Daily interest rate would be 0.0216/365=0.000592%

They payout interest weekly though. Looking really good!

Our payouts are calculated daily but the payout is done monthly (usually on the last day of each month).

Hi there armouretpaix, 2.18 is the annual equivalent rate, so each month you will receive roughly ~ 0.018167 BTC interest on a 10 BTC deposit.

Deposits are paid on a pro-rata basis as well from the first deposit. When you deposit mid-month, on 1st of next month, you will get paid interest for the number of days you had savings in your account.

I'm guessing the idea is: if they get more people to deposit btc it will give them more to trade/loan with, hence (if they trade/loan well) offer higher interest rates. If they are not loaning/trading the btc then I would be lost as to what they stand to gain.

Sure, for those that are investment smart and able to trade and guarantee returns, this may not be the product for you.

If you are sitting on a bunch of bitcoins and are not interested in the risks involved in trading them, then Magnr will give you a stable predictable rate of return for a lower risk. The closest analogy would be like a 'managed' bitfinex swap.

August interest has been paid out.

Changes in September include increasing deposit limits from 10 BTC to 20 BTC.

I have trouble logging into my account. I can login, but I can't see my earnings. Any info on this?

Thanks for letting us know +Bitcoin, this was reported by another user and fixed immediately.

The bug was caused by ongoing integration work as we begin merging btc.sx and magnr.com under one domain name.

Anyone happen to compare earnings on here with offering swaps on Bitfinex? Wondering how different they would be. I've been finding BFX to be volatile lately.

i tried this site a few months ago ,it seemed fine, but i had to leave because they barely paid anything. :(

Why would anyone trust anything coming from a newbie account, much less trust literally anyone besides themselves with full control of their money.

The same reason people trust exchanges... the reward is worth the risk.

Correct ranlo. I'm Joe, the founder of Magnr. Trust to us is more then a badge on this forum as we tend to notice a lot of trolling here which is unfortunate.

Trust for us is giving full and public visibility to everyone of all of our team members through their LinkedIn profiles. Trust is us using our real names, and real identities. We publicly display our incorporation details and office address on our site. If any forum members would like to come in and meet the team, then feel free to reach out to us directly (message us on our support email).

We also work with UK regulators and push for a positive regulatory stance here in the UK with agencies such as the FCA.

When individuals choose to deposit with us, yes, we will become a risk-counterparty to our client. It is important for everybody to understand this and it is something we do not hide. As with all things in finance there is risk everywhere, practically speaking I would ask every customer to do their own due-diligence on us as a company. For those comfortable with the risks involved in depositing with Magnr.com, then we aim to serve you to the best of our ability and thank you for the trust you place with us.

If you are uncomfortable with third parties controlling your coins, then a personal wallet where you can control your own private keys is your best bet.

Its interesting to know you guys pay interest with trade fee. It is good way to generate some additional income without risking your customers bitcoin in trade.

Is it 2.18% monthly and fixed?

I might put some of me monies here.

*
edit, just got my answers in my e-mail.

I noticed this:

The e-mails says: The maximum amount you can earn interest on is 10 bitcoins but in the Magnr website states: interest can only be earned on a maximum of 20 BTC. Deposits greater than 20 BTC will only earn interest on 20 BTC.

It was just raised to 20 so probably hasn't been updated on the site yet.

I'm not sure if I asked this before, but is there some sort of insurance/warranty for the coins we deposit?

Hey monbux.

Our storage partner BitGo provides a basic level of theft insurance, as detailed here:

https://www.bitgo.com/insurance

We currently do not provide additional insurance against default of our exchange partners but have limited measures in place to mitigate our client exposure to them. Please be aware of this.

Additionally, deposited funds are internally segregated by risk so that we are never taking more risks with our client holdings then we need to.

Hope that answers your question

You are telling that on the theft of bitcoin you have taken insurance, but what about trading loss occurs, when you are going to trade with our Bitcoins deposited and you occur loss then who is going to bear that loss. you have taken only theft insurance.

and you are clearly telling that you havent taken additional insurance against default of our exchange partners, it means that if the default is being done and you lose you deposit bitcoins then we(depositor) are going to suffer the loss.

Then the key of profit is also very less and high risk loss. vey bad idea. better to keep my bitcoins in my cold wallet and i will trade if i gain profit ok even if i do loss , atleast i will be satisfied that i have done wrong trading and lost the bitcoins, instead of crying on invested scam.

They aren't trading using the bitcoins, so I don't get how they can lose coins through trading losses.

The defaulting scenario is a good question, though, and really, there are two failure points for that (Magnr itself and their partner).

Site looks good, are there any positive or negative experiences so far? I consider to risk an little amount.

Hmmm....Will check it out.  I'm currently shopping around for a place to invest my unused coin at very little, to zero, risk.  This site will be on my "to research more" list.

From my experience withdrawal takes some time to to be released.

This is correct waterpile. Each and every withdrawal is subject to human audit to maximise security. Something we take very seriously.

Hi is this site still going? no post since last month.

I'm fairly sure it is!

Ok thanks.

Yes, we've been around for coming up to three years now with no intention of stopping! At Magnr we just wished Bitcoin adoption would go quicker already!

I would rate their service as one of the top5 of the sites I've visited lately

At this point you officially pay more than Bitfinex, too. Their swaps are down to ~1.5% APR if you're lucky (usually closer to 1% or less, due to waiting periods).

Not sure what website you are using. The Magnr I deal with is buggy, doesnt let me login half the time, and when it does it shows me all the variables text for my account rather then useful info

I cant login, I always get a login failure because I get a message of "session expired", please relogin but when I do.. I get the same message..

http://companydb.uk/10232951-magnr-ltd#.V44izxJGQyY

Magnr Ltd is a Private Company Limited by Shares first registered on 15 June 2016.
Company Registration Number: 10232951 - not 08849225 on their site.

Financial Summary
No financial data available

Previous Names
No previous names

http://companydb.uk/handlers/filing.php?doc=MzE1MDczMDI4MmFkaXF6a2N4&reg=10232951
Statement of Capital
Shares 100 x 0,01 GBP
Aggregate Nominal Value 1.00 GBP


Company Number 08849225 is Coins.sx Ltd. on same adress. Same guys Joe Lee and Kwok Man.
Who holds domain MAGNR.COM it's not clear.

My accounting never matches Magnr. Always in their favor up to 10% discrpeancy