August 2012 Results :

*******************
Operational results, MPOE
*******************

Overall trade 75`648 contracts, of which -12`312 +7`100 CALL ; -32`472 +23`764 PUT.¹

Revenue : 10`110.90263456 BTC, of which :
     *contract sales : 10`016.30636953 BTC
     *contract exercise : 94.59626503 BTC[/list]

Expenditure : 14`651.324164215 BTC, of which :
     *contracts bought : 11`562.32029052 BTC
     *exercise : 2`622.33420727 BTC
     *capital expenses : 466.66966642 BTC (9`333.58 × 4.9999%)

Loss : -4`540.42152965 BTC

*******************
Operational results, MPEx
*******************

Overall trade : 155`832.72262277 BTC, of which :
     *Revenue from sales fee : 309.03038447 BTC (154`515.19223830 BTC total trade volume)
     *Revenue from new accounts : 940 BTC²
     *Revenue from consultancy and other services : 68.50 BTC

Expenditure (CSR) : 10 BTC³

Profit : 1`307.53038447 BTC

*******************
Shareholders table
*******************

Total shares : 1`000`000`000, of which :

1. Mircea Popescu : 980`770`396 shares,
     2. MPOE.ETF : 4`077`552 shares,
     3. Others : 15`152`052 shares.

Total dividend : 1`239.03038447 BTC.

******************
Bondholders table
******************

Total capital : 9`333.58 BTC, of which :
     1. 1HLWcPokYJixh6BsJH9JWa8MzDaGSLGDds, 94.53038499 BTC @ 4.9999%
     2. 1NcrEUkRzqQaAEGabZKPTZhArzhJvYNGWh, 94.53038499 BTC @ 4.9999%
     3. 1CkEwsGgZ9saNRmr5FnbtYJjnLBdgGpS7J, 94.53038499 BTC @ 4.9999%
     4. 1J9AN7LiDNDUfzAwk8D3uBLT5diWHFFCh5, 945.30377439 BTC @ 4.9999%
     5. 1swAzHw1zTWqoi5184VinvUxLWnBskPVW, 1918.33834257 BTC @ 4.9999%
     6. 1Efr7txsbxMu2U5oTnFu4tDHVbVPvRAyBT, 1400.00000888 BTC @ 4.9999%
     7. 1A2hqHVSUERAT3t1yJ7ggYCQccvH6pZGZm, 2900.00000888 BTC @ 4.9999%
     8. 1D7YtrxnyK3ug3Rvp9jX66T8kVzWww9Jr8, 1886.34671031 BTC @ 4.9999%

To cover : 4`540.42152965 BTC
Loss per BTC : 0.48646087.

MPBOR valid 1 through 28 September : 4.9999%.

Final bondholder list :
     1. 1HLWcPokYJixh6BsJH9JWa8MzDaGSLGDds, 48.54505081 BTC
     2. 1NcrEUkRzqQaAEGabZKPTZhArzhJvYNGWh, 48.54505081 BTC
     3. 1CkEwsGgZ9saNRmr5FnbtYJjnLBdgGpS7J, 48.54505081 BTC
     4. 1J9AN7LiDNDUfzAwk8D3uBLT5diWHFFCh5, 485.45046937 BTC
     5. 1swAzHw1zTWqoi5184VinvUxLWnBskPVW, 985.14178622 BTC @ 4.975%
     6. 1A2hqHVSUERAT3t1yJ7ggYCQccvH6pZGZm, 432.67672807 BTC @ 4.99%
     7. 1Efr7txsbxMu2U5oTnFu4tDHVbVPvRAyBT, 718.95477396 BTC @ 4.9999%
     8. 1A2hqHVSUERAT3t1yJ7ggYCQccvH6pZGZm, 1489.26345546 BTC @ 4.9999%
     9. 1D7YtrxnyK3ug3Rvp9jX66T8kVzWww9Jr8, 968.71283151 BTC @ 4.9999%
     10. Mircea Popescu (creditor of last resort)

*******************
Miscellaneous
*******************

I. MPOE suffered what might very well be insider trading.

A good amount of CALLs were bought in July (over 1k), added to which a good amount bought since (over 2k) as well as a good amount of in the money PUTs were sold short (P180T, P190T, P200T, in total over 5k). The CALLs were executed shortly before the closure announcement of Bitcoin Savings and Trust. The PUTs were rebought on the market soon after the announcement, purchases continuing to the reversal of the position (the bot went from +5k to -5k on its book on those three MPSICs). The total losses resulting from these operations are roughly 4`500 BTC, which pretty much cover the month’s poor results.

It’s unclear to me what would be the appropiate steps, either to establish the truth on the matter (the suspicion might in fact be unwarranted) or to guard against similar occurences in the future. It seems to me improbable that the preventing of market manipulation can be accomplished by one Mircea Popescu, or even by any one entity in a market made out of pseudonymous or anonymous participants. There’s the possibly reasonable hope that as the market matures such movements become impossible, especially as the various amateurs with pretention of “knowing finance” who are capable of throwing hundreds of thousands of BTCs into pyramid schemes smarten up or go bankrupt.

While painful, the current month is also replete with records, and rather plainly demonstrates the are the limits of exposure for MPOE financing bonds. In July, a month during which BTC went pretty much linearly from ~6.5 to ~9.5 (+46%) MPOE stayed above water, realising net profits of ~870 BTC. In August, during which BTC went from ~9.5 to ~15.5 (+63%) and then back to ~10.5 (-32%) MPOE suffered losses equal to approximately half its trading capital (as computed by the new rules, introduced back in April), thus confirming the evaluations made at the begining of the year with regards to the worst case scenario.

II. MPEx proved its value this month - it is the first time since it was acquired that it generates larger revenue than MPOE. A significant group of newly registered users (especially significant with regards to their activity, this metric nearly doubling the current month) as well as the sales volume increase brought significant sums to investors.

Considering that the main competitor managed a total volume since its launch (in January) of approximately 250`000 BTC (roughly 30k a month) while MPEx has had transactions well in excess of 150`000 BTC this month alone we can conclude that MPEx currently holds a large majority of the BTC denominated financial instruments market.

It’s to be expected we find ourselves at a point of inflection. The low transaction costs, the significant volume, notable security, speed and availability advantages, various other strong points (free transfers, margin etc) are likely to convince pretty much all investors to open accounts in the coming months. As such we expect increasing revenue for the future.

III. F.PURE.SYNTH is withdrawn due to lack of interest shown by investors. All outstanding shares were rebought, the current float being 0.

IV. In April MPEx announced that it was looking for a market-maker for either options or futures based on difficulty. The third party selected to fulfill this role has offered options according to the specifications laid out then, without interruption until today.

Unfortunately, a string of losing transactions in the current month put that third party in the position of not being able to continue offering these options in the future. All holders have received their due BTC, but starting with September O.HASH will no longer be available on MPEx.

We are open to bringing this or a similar product back to the market, with the caveat that the correct valuation thereof has proven in practice to be more difficult than it seemed in theory.

V. To allow for a fairer pricing of risk, starting in September the limit on bonds interest is lifted (it was 2% at launch and then 5% starting in May).

Mircea Popescu will continue to supplement any capital shortfall, at an interest equal to the last bond but not less than the MPBOR for the previous month.

Due to this modification, all investors are given a two day grace period (until 23:59:59 GMT on the 2nd of September), during which they can withdraw or add new sums which will be considered for the current month (September).

---------

1) Contracts traded between third parties without MPOE's participation reached significant volume this month for the first time (10`628 O.BTCUSD.P190T and 17300 O.BTCUSD.P200N). This means the total number of traded contracts on MPEx during August was a record 103`576.

2) About a third of new registrations this month took place after the announcement of the S.DICE IPO.

3) 5 BTC to the Open Transactions project, 5 BTC to Azelphur to encourage quote stream bot development.

SebastianJu: this is what you get for "investing" in the scam exchange. Move to the right one.

Of course. And these dividends, along with the captial raised from selling shares, is what is used to buy back YARR. Or am I missing something?

You said, "Dividends from the shares she refuses to sell, not from the pirate." What the hell are you talking about?



Your problem is you expect me to do something that was never in the contract. The contract for YARR explicitly and in detail states what will happen when pirate defaults. You are the only one complaining about this and your complaint is not based on logic or reality.

One, you didn't even ask me whether or not I would sell the shares, second you don't know whether or not I have sold the shares, so don't sit there and say that I refuse to sell the shares.

Theymos: Look at August new membership. Think how much money people lost on crap "assets". Add these two.

Waves at Meni Rosenfeld.

TBH your problem with YARR was that I thought of a good idea long before you did ;-) Your TYGRR.BOND-PI was essentially a copy of YARR except that instead of holding assets you had a Cassius coin. That about sums it up.

May I remind you that the second pirate defaulted, I bought back 1,000 shares of YARR and went about answering investor's questions on IRC, skype and PM while you went boating for the weekend. I didn't sleep all weekend trying to trade, sell assets, and buy back shares of YARR. Right now I've bought back around 70% of the issue with no loss due to panic selling the assets of YARR. So I don't think it is fair for you to comment on YARR the way you did.

As for ciuciu's words. I've been selling assets and moving money to pay back on YARR this entire time. So it's a little unfair and frankly quite vindictive that ciuciu said what he did. What you may not know is that ciuciu is just upset because I canceled his (very large, 2000+ coin) pirate contract with CPA and told him to buy YARR, about 2 weeks before pirate defaulted. Ciuciu has no right to say what he does because he doesn't know anything, he doesn't own any YARR. So he doesn't know I've been buying shares back ( a lot of shares ). I had talked to him before and he refused to buy YARR. So I know he is just bitter and it pisses me off that he would try to badmouth me in that way. When this is said and done several of the ppl who had accounts with CPA said they would let me reveal the names and size of their contracts. That will put a nice sock in the mouth of anyone that wants to badmouth CPA in the future.

As for the dividends from YARR's backing, that is owned by the backers. I put up over 1,000 bitcoins of my own personal money to back YARR. Of course I am entitled to the dividends. They're my shares. At what point does the contract say I will continue to pay dividends after pirate has defaulted? This is how insurance companies make money. We make money by charging a fair rate and then making money by investing the premiums wisely. No big suprise here.

My only care here is that when this pirate garbage is finally said and done, nobody will be able to say CPA didn't fulfil it's obligations.

Have you had your head buried in the sand for the past 2 weeks ? ....perhaps away on another planet ?

Dividends from pirate?? Are you kidding?

He has not paid out dividends in weeks. Making a number on a paper go up is not paying out dividends. Esp when the guy even claims he defaulted.

Well, I bought back about 2,000 shares already. I'm just hammering it home. The difficulty is that selling the shares depresses the market price of the shares I am trying to sell, so I have to space it out a little.

Put up your shares at 1, and I'll buy them. Should take another 2 weeks to clear the remaining 600 or so shares.

After much delay, some my fault some due to the GLBSE down time.
1850 BTC is on it's way to GLBSE to be paid out as a dividend. This will make the bonds be worth 63% of 0.63 in face value
The 125 BTC that was suppose to be paid as a dividend disappears into the cloud due to a bug on GLBSE, we are getting the 125 BTC back and once we have gotten it back we will pay it out.
This was one of the reasons GLBSE was down yesterday.
//DeaDTerra
(6 confirms until dividend )

um, did you notice that the volume and demand on glbse was hundreds of thousands lower than on mpex?

It's well known that MPEX's PR is not the best. To gain respect as an exchange, they need to fire their current PR immediately and replace them with a new one.

Forgot to say: mpoe.org, mpoe.biz, mpex.us, mpex.biz among others all point to http://polimedia.us/bitcoin.