10K sold into the fund's own bid.  As the shares and cash didn't move loss to DMS on that was .4% of transaction (.2% each on buy/sell) so .004 * 112.2 = .4488 BTC

For all other transactions I've worked out what they should have sold at and the difference between that and what was actually received.  The total for that comes to 1.612054 BTC.  That's actually very slightly higher than what I should refund (as DMS would lose the transaction fee on the difference if they'd sold at correct price).

Adding the 2 together gives 2.060854 BTC which I'll send to the DMS account after I've updated the spreadsheet and made sure the totals then are correct.

As I'll get my management fee on the sales I'll end up being refunded a bit under half of that tomorrow anyway.  Congrats to those who got the cheap PURCHASE and were able to split and sell them profitably.

Pretty major oops - put the PURCHASE up for sale at the buyback price instead of the selling price.

Have put it to correct price now.  Will work out how much less was received than should have been for the bunch that sold and refund the difference myself (so DMS investors won't have lost out).  As 3% of the difference was my management fee it shouldn't be too painful for me.

I see this security as a pretty low-risk one (from a scamming perspective) anyway.

It's clear where issuer's profit comes from - 2% management on turnover.

As there's a full reset every difficulty change, the most he could steal would be the cash from one cycle.

If investment increases each cycle (as trust in him grows) then he'd make more from being honest (but over a longer time-frame) than from stealing.  Which is the single biggest factor I look at when assessing CP risk - if someone's making a nice profit by behaving honestly then there's (in general - there ARE exceptions) no rational reason for them to steal even if they were dishonest by nature.

I don't know eltopo particularly well - other than that he's been an active participant in DMS (both in the thread and in trading - I see his name plenty of times on transfers).  But at least I'm confident he understands how to run the security, how mining difficulty works and isn't penniless.  Not all of which are true for some of the mining operations being IPOed recently.

Reason I don't like it is that it gives a false sense of security.  Scammers can still scam just they get something to hide behind that the naive might believe prevents them from scamming.

With securities like this one it's pretty much impossible to prevent scamming at an exchange level - though you CAN make it more obvious when they're trying.  One easy way to steal all the funds would be:

1.  Do forced buyback on all shares at 1 satoshi.
2.  Transfer some shares out to alt account
3.  Do dividend payment which gives out all funds to the alt.

Transfer of shares, dividends and forced buybacks are necessary for operation of the securities - so can't be blocked.

I can immediately think of less obvious ways - but fact is that without logic in place to check whether transactions are valid (or manual approval of them) scamming/theft can't be prevented.  And if it can't be prevented then there's no benefit in pretending that it has - as that just makes life easier for scammers by giving them a means to obtain credibility without actually stopping or majorly hindering them.

I'm all for anyhting which stops scamming/theft - but it needs to actually do so not just make it slightly harder.  Or the downside (making it easier for scammer to gain trust) outweighs the benefits (making it slightly easier for honest people with little reputation to gain investment).

Leaving the old order up as well so I remember to add sales from that order on when producing next report.

The vote on CIPHERMINE bond investments ends today - there's a clear majority of those voting who want DMS to keep them but not quite enough at present to pass the motion.  If the motion doesn't reach 50% then I'll buy them off the fund with personal funds tomorrow morning (motion ends at midnight my time and I'll have been at the pub so won't want to be moving funds around then).

I MAY not be around to produce a report on Saturday (or I might, alternatively, do it an hour early).  I'm watching Roger Waters - the Wall at Wembley Stadium and will be heading for a train to London at the time dividends are usually paid.  Looks like SELLING dividend won't be until Sunday so it's no big deal if there's no report on Saturday.

There's a small error in the above report.

I didn't reduce value of CIPHERMINE bonds properly to account for a few more sales.

Here's what it should have been:

BTC Balance (BTC-TC)   1253.18399
9071 LTC-ATF.B1    90.71000000
CIPHERMINE Bonds    387.10000000
Coinlenders CD 27/9   201.8746865
Coinlenders Cash   105.8992007
Just-Dice Balance    247.35000000
TOTAL ASSETS    2,286.11787734
   
Outstanding MINING   190110
Outstanding SELLING   190110
Outstanding PURCHASE   9738
Effective Units   199848
   
Block reward   25
Difficulty   86,933,018
Hashes per MINING   5000000
   
Daily Dividend    0.00002892
50 days (Min Liquid)    0.00144625
100 days (Forced Close)    0.00289249
365 days (Buyback)    0.01055760
405 days (IPO)    0.01171460
400 days (Post SELLING div)    0.01156998
410 days (Pre SELLING div)    0.01185923
   
NAV Post MINING Div    2,280.33728534
NAV/U Post MINING Div    0.01141036
Days Dividend Post Div   394.48
SELLING Dividend    -         
NAV Post SELLING Div    2,280.33728534
NAV/U Post Selling Div    0.01141036
PURCHASE selling price    0.01198
PURCHASE buy-back price    0.01118
   
J-D House profit at report   6268

Adjusting PURCHASE price to correct slightly lower value now.  Was puzzled how PURCHASE price hadn't dropped at all - but had to put new PURCHASE sale up whilst I double-checked to stop people buying massively overpriced ones.

Sold   3612
Swapped   0
Total   3612
Price   0.012
Total   43.344
Less Fee   43.257312
Man Fee   1.29771936

BTC Balance (BTC-TC)   1253.18399
9071 LTC-ATF.B1    90.71000000
CIPHERMINE Bonds    389.93000000
Coinlenders CD 27/9   201.8746865
Coinlenders Cash   105.8992007
Just-Dice Balance    247.35000000
TOTAL ASSETS    2,288.94787734
   
Outstanding MINING   190110
Outstanding SELLING   190110
Outstanding PURCHASE   9738
Effective Units   199848
   
Block reward   25
Difficulty   86,933,018
Hashes per MINING   5000000
   
Daily Dividend    0.00002892
50 days (Min Liquid)    0.00144625
100 days (Forced Close)    0.00289249
365 days (Buyback)    0.01055760
405 days (IPO)    0.01171460
400 days (Post SELLING div)    0.01156998
410 days (Pre SELLING div)    0.01185923
   
NAV Post MINING Div    2,283.16728534
NAV/U Post MINING Div    0.01142452
Days Dividend Post Div   394.97
SELLING Dividend    -         
NAV Post SELLING Div    2,283.16728534
NAV/U Post Selling Div    0.01142452
PURCHASE selling price    0.01200
PURCHASE buy-back price    0.01120
   
J-D House profit at report   6268

I'm not sure an account lock can be done in such a way as to stop fraud anyway.

People who think blocking withdrawals/transfers of cash prevents it are wrong.  Eltopo could just buy shares then transfer those to a different account.  Funds could even be transferred using his own shares.

I don't think it's worth the bother as all it does is add a few minutes to the time needed to steal (and some cost making it less efficient) - it in no way prevents it.

Security seems fine - though only responsive in the range -50% to +50% per change.

The upper end isn't an issue but the lower end is.

I don't think anyone expects difficulty to FALL in the coming months, so allowing for it to in the payouts is inefficient.

The formula for payout on LONG is :

0.01 + ((current difficulty - last difficulty) / last difficulty) / 100 * 2

That means a payment of 0.01 if difficulty doesn't change at all - and more if it rises.  That seems wasteful in an environment where a fall just isn't likely - it means half of all capital invested is paying fees without ever being exposed to any useful risk.  In effect the shares are half the price and an additional extra amount is being tied up, shuffled around and having fees paid on it when everyone knows it'll just go back to LONG at the end.

I think if you remove the "0.01 +" and change the 2 to a 4 you'd have an instrument which sold at the same price but where the range for LONG/SHORT was twice as wide.  As you're (sensibly) allowed to change the formula between iterations you could change it back when difficulty rises reduce a bit.

Your goal should be that .02 range represents all difficulty-change possibilities which there's a non-trivial chance of happening and ONLY those.

I'd also suggest a table showing sample settlement values for LONG/SHORT for some difficulty changes - such as 0%, 10%, 20%, 30%, 40%, 50%.

And maybe add extra brackets into the formula to make it perfectly clear that "/100*2" does NOT mean "/(100*2)".

Incorrect.  The payments were made off Bitfunder but the shares have already been transferred on Bitfunder (somewhere a page or so back that was stated).

Sold   3871
Swapped   0
Total   3871
Price   0.01203
Total   46.56813
Less Fee   46.47499374
Man Fee   1.394249812

BTC Balance (BTC-TC)   1213.874005
9071 LTC-ATF.B1    90.71000000
CIPHERMINE Bonds    389.93000000
Coinlenders CD 27/9   201.7556223
Coinlenders CD 12/9   101.904679
Coinlenders Cash   3.9593427
Just-Dice Balance    247.13000000
TOTAL ASSETS    2,249.26364931
   
Outstanding MINING   187262
Outstanding SELLING   187262
Outstanding PURCHASE   8974
Effective Units   196236
   
Block reward   25
Difficulty   86,933,018
Hashes per MINING   5000000
   
Daily Dividend    0.00002892
50 days (Min Liquid)    0.00144625
100 days (Forced Close)    0.00289249
365 days (Buyback)    0.01055760
405 days (IPO)    0.01171460
400 days (Post SELLING div)    0.01156998
410 days (Pre SELLING div)    0.01185923
   
NAV Post MINING Div    2,243.58753420
NAV/U Post MINING Div    0.01143311
Days Dividend Post Div   395.27
SELLING Dividend    -         
NAV Post SELLING Div    2,243.58753420
NAV/U Post Selling Div    0.01143311
PURCHASE selling price    0.01200
PURCHASE buy-back price    0.01120
   
J-D House profit at report   6213

Have sold 1k or so Ciphermine bonds so far making about 0.6-0.7 profit.  Will continue slowly selling them until the vote ends - at which stage either DMS will be holding them (and only selling down to next projected capital allowance) or I'll have taken them off the fund's hands and they won't matter any more to DMS.  J-D was reported slightly lower than it should have been yesterdday (by 0.1-0.2) as I'd estimated value after dooglus' fee deduction forgetting that he'd actually already taken it the previous day.  Value is now correct (I verify it more thoroughly on days when there's a SELLING dividend anyway.

Potential investors should be aware it's run by Realsolid - the guy behind Solidcoin.

That's the guy who constantly failed to deliver his new currency then pleaded poverty and begged BTC from his followers so he could finish it off.  He then vanished for ages (6 months+ maybe longer) before returning to sell shares in this to pay for the work he'd already taken donations to pay for for before disappearing for ages.  That history is well known in the alt-coin section but was never really relevant previously here.

Which is likely why his stooges/sock-puppets are promoting it rather than himself.

It's not so much that they're favoured as that they have to be protected.

Mining investors are betting that the recent very fast rises in difficulty are going to stop soon.  Capital can't be returned to SELLING investors until it's certain that it won't end up being owed to MINING investors.

So right now, at the prices the shares are trading at, SELLING investors are only looking at a fairly small profit on their investment.  But it isn't anything like as low as it may at first seem.  IF difficulty continues rising at the same sort of rates (which is what they're betting on) then over half of their capital would be returned in the next 2 dividends - and most of it within months.  So although the profit is low (again - only IF they're right) they don't have to tie up capital very long to realise the profit.

The opposite is true for MINING investors - they can potentially make big profits but ONLY if difficulty slows down rising pretty soon.  And even then it would take a long time for them to get that profit in most scenarios (exception being if difficulty stopped rising totally for some reason and there was good reason to believe it wouldn't rise again in the near future iin which case SELLING should vote to close and MINING would get a massive profit immediately).

It's not a huge issue provided the block sales were done on the basis that they couldn't sell the shares on the market before the IPO had ended.  It would obviously be a big pain for you and other investors if the decline in price turned out to be block-holders flipping their shares for a small profit at below the official price for batch 1 - let alone the current price.  Ideally those shares shouldn't have been transferred at all until all public sales from the company had ended.  The benefit to the company of such sales is selling more - which ceases to be the case if the block ones can be flipped and so have to be bought again before the company sells more itself.

Weexchange has same operator - so doubt he hijacked his own site.

Most likely there's some maintenance going on.

I had the problem you detail earlier in the day - but it went back to working normally within 10 minutes.  It'w working fine for me right now fwiw.

Yeah just my own trades - only one I can find at present loads everything which is pretty huge on some of my accounts.  Exactly same format as the current one just only last day or two's data.

Doubt it.  Unless I misunderstand his intentions totally, shortly after publishing reports he'll place Asks slightly above NAV/U and Bids slightly below it.  Even if he doesn't place orders he'll be filling orders.  So market price will be kept stable for a period after the report.

Funds which can issue (effectively) unlimited paper should never be trading far from NAV/U.

The only interesting movement is likely to be BEFORE the report if people strongly believe he will have made or lost anything significant.  But I  think most who bought this realise it's designed for investment not speculation (i.e. the price tied hard to NAV/U) so will just and wait and see.

5% (your guess) would be pretty impressive given that the month started with zero actually invested.  Getting significant(ish) BTC invested at all (without moving prices) takes a while to do.  Though I guess he could have made a few % just by dumping it into J-D and pulling from there gradually to move into actual intended investments.

Sold   1429
Swapped   0
Total   1429
Price   0.01205
Total   17.21945
Less Fee   17.1850111
Man Fee   0.515550333

BTC Balance (BTC-TC)   1163.532459
9071 LTC-ATF.B1    90.71000000
CIPHERMINE Bonds    400.00000000
Coinlenders CD 27/9   201.6318028
Coinlenders CD 12/9   101.8386748
Coinlenders Cash   3.95711353
Just-Dice Balance    247.10000000
TOTAL ASSETS    2,208.77004975
   
Outstanding MINING   183719
Outstanding SELLING   183719
Outstanding PURCHASE   8646
Effective Units   192365
   
Block reward   25
Difficulty   86,933,018
Hashes per MINING   5000000
   
Daily Dividend    0.00002892
50 days (Min Liquid)    0.00144625
100 days (Forced Close)    0.00289249
365 days (Buyback)    0.01055760
405 days (IPO)    0.01171460
400 days (Post SELLING div)    0.01156998
410 days (Pre SELLING div)    0.01185923
   
NAV Post MINING Div    2,203.20590310
NAV/U Post MINING Div    0.01145326
Days Dividend Post Div   395.96
SELLING Dividend    -         
NAV Post SELLING Div    2,203.20590310
NAV/U Post Selling Div    0.01145326
PURCHASE selling price    0.01203
PURCHASE buy-back price    0.01122
   
J-D House profit at report   6268

Have listed the CIPHERMINE bonds in the report - but obviously they'll be replaced back by BTC if the motion fails.  Added them in so anyone verifying the report can do so and also to make it easier to update if we sell some before the motion ends.

Obviously if the motion doesn't get enough votes either way this time it won't go up again - as there'll be no way to buy them at face value after then anyway.

One very easy question : what percentage of funds raised from share sales is going into the IPO?

It's not clear from the prospectus whether a fee has already been paid to TATI for underwriting/managing the IPO or whether some portion of funds raised is being taken.

Put simply, if 1000 BTC worth of share sales occurs how much gets added to the Book Value of the company?  It would be 1000 BTC if fees are already paid and a smaller amount if some percentage of sales were being taken.  If a fee was already paid and is deducted from the existing balance sheet then I don't see a need to disclose how much it was for - but any ongoing liability should be disclosed.

I've now purchase 400 BTC worth of Ciphermine bonds for DMS.

IMPORTANT : Please read the below before replying.

At present the motion hasn't completed on this - and it isn't clear whether it will pass or not.  I had already arrange with Kate that we would have the option to purchase this large chunk directly if the motion passed.  I decided to go ahead anyway - to lock in the opportunity if the motion passes.

If the motion passes DMS will keep the bonds.

If the motion fails then I will:

1.  Fill all orders above face value on the market - with DMS retaining any profit from that.
2.  Buy ALL the rest at full face value from DMS.  I can move 400 of my personal BTC on-site within a day no problem.

Any loss - including full default - on the bonds prior to the motion passing is on ME not DMS.

Basically I'm personally guaranteeing zero loss to DMS if the motion fails (and possibly some profit anyway) whilst locking in an investment for us if the motion passes.  So unless/until the motion passes this is effectively invested in me - not in CIPHERMINE bonds.

You should NOT let this influence your vote.  If you believe it's a unsound investment then you should still vote NO - I'm not asking for or expecting more YES votes just because I've commited some of my personal BTC to lock in an option for us.  If you were intending to vote YES anyway then obviously this isn't going to change anything.

EDIT:  Just to note that I may sell some at above face value even before the motion ends.  Any profits from that do, of course, stay in DMS.  Whilst DMS doesn't actively trade I'm always willing to sell its investments if there's sufficient markup over face value.