Dividends paid.

Issued: 16367 bonds (1636.7BTC FV)
Interest Payment: (1636.7*.01)=16.367BTC

Next Payment Date: June 25th

Sorry for later-than-usual dividend - took car to mechanic, did some shopping this morning. Waiting on 6 confirmations. Dividend will indeed be .00045/unit.

Cheers!

ETA: Derp. They would have been .00045 if there were 8100 shares, not 9000. My bad 

Hey, everyone. A small update. I've been neglecting the public spreadsheet a fair bit. "Keeping up with it" will largely be a problem of the past once BDK-BLoC is launched. BDK-BLoC will take on a larger scope than I originally imagined, effectively becoming the "me" most people talk to when they have business to discuss, and will handle CD sales and repays. Additionally, because I am able to separate access/edit privileges, I may soon hire and permit an employee to do some of the more time-intensive parts of maintaining that website (scoping out companies, ID verification, filing an internal evaluation with me, and calculating their credit score using banks' template Starfish generously posted which I altered a bit, as well as reviewing new financial reports the company submits and updating the credit scores as necessary). Additionally, I can give that employee my GLBSE .csv, BDK-BLoC .csv files, and have him fill out the I/O reports as appropriate. I do enjoy the accounting, but I don't have the time, and the spreadsheet's wildly out of date, with inaccuracies accumulating.


Hiring an employee allows me to spend my time talking with the Movers/Shakers, working on deals, and concerning myself more with meta, big-picture stuff, including fundraising for BDK and revisiting doing securities offerings for Producers. I've decided to remove my coins from Hermes/Icehill, which I got a green-light on yesterday, and will instead issue a lesser USD loan to Icehill's 20Mission Project at more reasonable rates. I also learned last night that I will be gifted a 5% equity stake in Icehill upon its public registration, which was very surprising, very pleasing, and very much appreciated. This asset will be considered a part of "BDK." I'm excited to continue working with Icehill and the associated players.

BDK dividends tomorrow will be ~.00045/share after I receive 18BTC from imsaguy, pay 36BTC interest to a CD-holder and 16BTC to BDK.BND-holders. There was another potential default on ~60BTC, which will be counted in next month's report (principal - bad-debt-sale) after I'm certain it's an intentional default.


Cheers!


ETA: If someone's interested in doing the tasks I outlined in the first paragraph, it should take 5m-90m per day (excluding additional workload upon BDK-BLoC launching) to reconcile GLBSE .csv & BDK Google Doc, and account for the daily transactions I'll email/Skype to you. Once BDK-BLoC launches, workload will increase quite a bit. Initially, I'll be willing to pay 1BTC/day (paid on Mondays when I do the rest of the dividends) - work on your own terms, just get everything in there and updated by the end of the day. Once BDK-BLoC launches, I'll probably be willing to move up to 2BTC/day, and give raises as workload increases if performance doesn't deteriorate. You must be fairly competent at spreadsheet software (incl. Google Docs), be willing to use Skype, and have the initiative/generosity to prettify & prune the sheets, adding new statistical calculations as would be helpful.

ETA2: Updated spreadsheet. The ~60BTC loan I talked about maybe being a default likely will not be. Lendee just contacted me. Cheers!

Any ideas or criticisms -- now's a great time, even if you think they may be absurd, or would cut into my bottom-line. I figure I should have the mock-up and formulas complete by next week, and the dev already has much of the complicated core infrastructure complete from other projects, though neither of us have fully committed to each other just yet. I don't plan on bringing a designer in unless I have lack of demand, which isn't a problem even while I'm only using "pen&paper," so the site will likely look pretty ugly and basic, but with some maff-intensive infrastructure underneath making it seem a fair bit simpler than it is. Launch may be just 4-8 weeks away.

I'll post the mock-up when finished (6/20 maybe? We're house-hunting and will be away more than usual this week). Primary objective is to make lendees feel empowered with information, and making sure nobody's getting hit with something they don't understand. I want to be very up-front to prevent time-consuming disputes in the future, and I certainly don't want business partners feeling like they were treated unfairly, because I want their business. Additionally, security is extremely important. I want to feel very confident someone's BSing me or was negligent in the extreme if they claim a malicious person made a loan in their name. Not only will it be impossible for an account to request withdrawals to any BTC address but the one they've whitelisted (48h mandatory wait & phone call to the number registered with the account if you request it to be changed), but having your email account compromised will not allow a hacker to make loans to your own address, either.

In the second tier of objectives, I want BDK to force transparency in the market. BDK-BLoC will permit automatic publishing of businesses' financial reports if their account opts in, fulfilling their public disclosure responsibility without having to do much manually. Additionally, I want BTC to be known as a legitimate medium of exchange, and that includes having BTC associated more with generosity than drug & firearms sales (not that I have anything against 'em). CD-holders will be allowed to choose a % of their interest to donate to a charity. Additionally, lendees are permitted to donate up to 5% of what would otherwise be BDK's profits on the interest of their loan to charity of their choosing.


Cheers!

I post all of my positions, lendees, and lenders publicly @ https://docs.google.com/spreadsheet/pub?key=0Ao892S4MOoDZdGZSbjJVd1ZTbFVLZE5aRE95bE91NVE&output=html

It's a fair bit out of date (at least as far as lendees -- most of those people paid interest and renewed). I've had other stuff going on. I'm down to a bit over 1k Cognitive shares ATM. I doubt I'm any longer the largest shareholder.

Talking with the dev, and getting pretty excited about this. I'm creating a detailed mock-up (Google spreadsheet with links, so it shows what users would see), all the formulas for him. A fair chunk of the core infrastructure necessary, he's already developed for other services. Additionally, implementing the ability for the site to securely sell CDs is no problem. If someone wants to make a deposit, it's as simple as clicking a button, choosing which duration-to-maturity you want and how much you want at next maturity date (interest-only, partial-principal+interest, full repayment, or full reinvestment/renewal), receiving an address, and sending coins from your client to the given address. You won't need to interface with me at all to loan to me, and in many cases, I won't need to interface with you if you want a loan from me.

None of the private keys will be on the app server, and the wallet for everything (less the hot wallet, which is used exclusively for smaller "auto-loans") is offline, so we use an alerter system to keep everything automated, and customers knowing exactly the status of their money. Password recovery can be automated, but only if you remember certain critical information (which won't be in your email account unless you circumvented certain protections by writing down and saving information there). Otherwise, if you can't remember your password or critical info, you'll probably have to request I call you (but only with the address Loan requests can't be made without a 4-digit PIN code (very long delay between retries). BTC addresses will be whitelisted and locked without a phone call, so there's effectively no risk at all of a malicious person making a loan to a themselves with your account, even if they've managed to break into your account. By requiring a valid phone number and requesting a gpg key, I can be pretty confident I'm talking to the true account owner even in a catastrophic event.

Repayments for loans is super-simple, and I think people will appreciate the detail and transparency with credit reports. Everything's totally transparent for the users -- they can see and confirm pretty much everything before taking an action. There will be a lot of maffs, but it'll be broken down for users. Additionally, there's no reason I can't allow current trusted lendees to sign up without business information, too.

I'll also be receiving a few thousand coins soon which I can use to pay the dev & keep for lending. There's really no limit to what this site can do. It could handle everything from charity registrations vying for a % of loan arb, to allowing companies to post investor information all in one place and opt to have their financials they send to me released publicly each month, to even allowing a referral system for depositors. Letting individuals have accounts for smaller LoCs or deposits only is minimal trouble. Lots of exciting stuff which could be done.

Yeah... college kids cause rallies with tens of thousands of dollars' worth of sudden buys along with $40k bidwalls creating upward pressure. As if this uptick was organic in the slightest...

(trololo)

There are two, maybe three people who buy bad debt. They want a lot of information, and you'll be lucky to get any offers (expect about 2.5-10% of amount owed assuming the bad debt isn't months old and you have no info on the defaulter) . An auction would be silly unless it's for thousands of coins' worth and you have solid info on the guy.

2BTC sent. http://blockchain.info/tx-index/9088047/60dd221c7ac7e74c21f612071efa78417c94b1045febf487d7b8c0f298138e23 Please pay interest only (.18BTC) to 1N4PiTb8uR1puwJec7Z4cVBZv1MyNH8v6V per 5D. Cheers!

ETA: Also signed up using referral link.
ETA2: bravetheheart did indeed return the coins back. Cheers!

*straightens tie, exhales slowly, keeping in mind that BTC was worth ~$5.20 at the last valuation*

Last Valuation on 5/28 -- today is 6/13

GLBSE Securities Re-valuation (reconciliation between BDK sheets & GLBSE 5dayavg):
Cognitive: BDK - .611BTC/share, GLBSE - .599BTC/share -- total loss of 12.672BTC on paper
BitcoinTorrentz: BDK - 1.01BTC/share, GLBSE - .74BTC/share -- total loss of 1.08BTC on paper
YABMC: BDK - .3BTC/share, GLBSE - .258BTC/share -- total loss of 675.444BTC on paper
REBATE: BDK - .201BTC/share, GLBSE - .172BTC/share -- total loss of 27.356BTC on paper
BitVPS -- new purchase: 0.003125BTC/share (27.68k purchased)


Total securities FMV change since last valuation -- loss of 716.552BTC.


ETA: Contract on GLBSE has been updated. Thanks, Nef.

Well there's your problem.

Finally got around to finding the email I sent to GLBSE about the contract change:

From: "B.R." <benjm00@gmail.com>
To: "GLBSE Support" <support@glbse.com>
Subject: Re: Contract Changes
Date: Wednesday, May 09, 2012 4:00 PM

Oh. While you're poking around in the DB - any chance I could have BDK.BND
launch ASAP? I think it's supposed to go live in ~6 hours, but I'd like to
get to barking for it before going to sleep.

Cheers & thanks always for the help.

On Wed, May 9, 2012 at 3:55 PM, B.R. <benjm00@gmail.com> wrote:

> Howdy. I'd like to have two contract changes committed. First, the BDK.BND
> contract should be updated to read as follows:
>
>
> ----
> BDK.BND pays 1% of face value every week (Monday). Percentage will remain
> at 1%/week until the bond is bought back by the bond-issuer ("Ben Malec").
> Bonds will be issued @ .1 BTC each. Thus, each share will pay .001BTC every
> week. There is no limit on how many bonds may be issued nor when they may
> be issued. Bonds can be issued and sold without warning by the bond-issuer
> at any price he wills. Bonds cannot be sold back to the bond-holder except
> in case of a buyback. BDK.Bond does not have a set date of maturity.
>
> "Buyback" -- The bond-issuer may buy back all bonds at a price of
> .101BTC/share at any time he wills, without warning. In this case, the
> bond-issuer will use GLBSE's forced buyback feature to pay .101BTC/share.
>
> "Contract Changes" -- The bond-issuer is not permitted to change this
> contract at any time under any circumstance. To "change the contract," a
> buyback must be placed and a new bond asset listed on GLBSE.
> ----
>
>
>
> While it states there should be no contract change, the IPO has not yet
> occurred. No pre-IPO shares have been issued, and potential bond-purchasers
> have been alerted to the change on the forum (yesterday, I believe). The
> only change was made to the "Buyback" provision to account for the new
> forced buyback feature. If you really need a (meaningless, since it can be
> postponed) date for it to mature, it can be set to 5/10/12. It's so soon
> because IIRC, I can't do a forced buyback until the present is beyond the
> set date of maturity.
>
>
> The second contract change I'd like is for BDK. Since the contract was
> issued, multiple changes to values (all beneficial to shareholders) and
> some clarifications were made. While I state in the contract that 60 days
> must elapse after I've made the change public, since the changes are all
> beneficial for share-holders and nobody has objected to the changes being
> committed immediately. Understand if you insist on waiting for these
> changes to be committed to GLBSE. However, I will be honoring the
> shareholder-favorable changes whether the GLBSE contract is updated or not.
> The modified contract is as follows:
>
> ----
> Ben Malec (referred to within this contract as "me," "myself," "I," and
> "operator") will issue 100,000 shares of "BDK Hybrid Instrument." Each
> share not controlled by the operator represents .0009% of BDK's monthly
> profit.  Dividends will be paid every Monday, starting May 7th, 2012.
> Dividends will not be paid on the first of the month unless that happens to
> be on a Monday. 100,000 shares will be issued. Up to 5,000 shares are to be
> sold on the second day of each month for four months, starting on the month
> of May, 2012. After that time, shares may be issued at will of the operator.
>
> Additional provisions
> "Operator Equity" - The operator holds all equity of BDK. Shares are not
> tied to equity, and represent only .0009% of BDK monthly profits.
>
> "Shareholder Votes, Non-binding Motions" - While motions may be
> introduced, they are non-binding. They exist only so the operator may gauge
> opinion of those invested in BDK's success.
>
> "Change of Contract" - The operator is fully permitted to change the
> contract at will, without consent of shareholders. However, the modified
> contract is not permitted to go into effect until sixty days after the
> changes are made public. When the contract is changed, the operator will
> honor the ability for shareholders to sell shares back to him at a price of
> .125 Bitcoins per share between the time a change is made and the time 60
> days have elapsed since the change was made public.
>
> "Buyback" - At any time, the operator is permitted to buy back shares
> issued. The operator will pay .64 Bitcoins per share if the operator buys
> back BDK shares prior to August 3rd, 2012. If August 3rd, 2012 or later,
> the operator will pay ((.32 Bitcoins + GLBSE 5 day weighted average of
> trade transaction amount per share of BDK shares)/2)
>
> "Share Value Protection" - If shares trade for less than ?.01 on GLBSE for
> at least 168 hours continuously, the operator MUST issue a bid order of
> ?.05 in an amount which equals 50% of shares issued not controlled by the
> operator. The "168-hour timer" does not again reset for 26 weeks after the
> "Share Value Protection" provision was last called to action.
>
> "Negative Equity and Operator Liability" - BDK is permitted to operate
> while having negative equity so long as BDK has not had negative equity for
> 90 consecutive days. On the 90th day of having negative equity, the
> operator will be held personally liable to pay shareholders $.10/share (or
> ?.02/share, whichever value is lesser). In cases where BDK is unable to
> achieve due to reasons unrelated to BDK experiencing prolonged negative
> equity (operator experiencing imprisonment, debilitating illness, GLBSE
> being hacked and made unusable, EMP strikes, police raid, or death, for
> example), the operator is not liable.
>
> "IPO Value Preservation, Operator Trading" - The operator is not permitted
> to ever sell shares for less than he previously sold them for. However, he
> may sell shares for an amount equal to or greater than the amount he
> previously sold them for at will.
> ----
>
>
> Cheers,
>
> Ben
>

Nef PMd me on IRC after I sent those, but I don't have logs of what he said (I don't remember, either, except that he said he's uncomfortable having the BDK.BND IPO launched before schedule). Sent another email to GLBSE about it. Fwiw, 60 days hasn't elapsed from when I stated that change would take effect, which may be why Nef didn't change it. It was stated on April 28th, so 60 days would be June 27th.

ditto

That applies to sellers, too. There are very few ask orders on Gox. >$400k (~75kBTC) to go down $.50 (5.4), ~$125k to go up $.50 (6.4). There will need to be a massive dump on the tracks to stop what looks to be an inevitable $7 rate within a week.

There'd be a small fee for reviewing the potential lendee's information, assigning scores, and creating an account for him. ~3BTC

A LoC doesn't guarantee the money will be there to lend at all times, however (at least, not at the normal rate). I was figuring I'd keep 150BTC or so in the hot wallet for the <100BTC auto-transactions while there are only a few BDK-BLoC accounts, refill as needed and keep the rest as cash-on-hand (~1kBTC) or in liquid investments (~4kBTC). For >100BTC loans, it may be necessary to levy more interest on those who request 1kBTC+, because it means I'll probably have to sell some investments at a loss. The website could display something like "amount available to loan at base rate" which would be the cash I have on hand, and then "amount available to loan at Tier 2 rate" which would be what I have in liquid investments (or  for cases where I have to dip into my GoxUSD reserves to pay a loan in BTC), then "amount available to loan at Tier 3 rate" which would be what I have in relatively illiquid investments. So, the base rate would be Prime + Modifier for credit rating. Tier 2 would be the same, but with a higher up-front fee, perhaps 4% of principal (I forgot to mention this in the OP -- there's a %principal small fee for new loans, because it'd be stupid for me to free up 2kBTC to loan someone, then have them repay just 2002BTC the next day). Tier 3 would again be the same, but with a dramatically higher up-front fee, perhaps 25% of principal.

This way, it discourages lendees from taking out more money than I can easily lend unless they truly need it, but it's also there for them in case of emergency.

If someone owes me money, it'd be pretty stupid of me to damage their business and create outlandish fees, reputation damage not even considered. I want a symbiotic relationship with my lendees, not a parasitic one.

Loan acceleration is often used for loans on a fixed payment schedule. If the lendee misses a payment date, the loan can sometimes be recalled in full within, say, 72h. This is to ensure that in times of economic hardship, the contract between lender and lendee is fulfilled first, as red flags have popped up that the lendee may be insolvent. Not everyone is liable to have their loans recalled in the potential mechanism I've described, and the max 50% is only for the most risky lendees. Lendees who have liability of their loan being recalled would be notified immediately if their credit rating drops.

I think I will reword it so the LoC needs to be frozen first, a default to occur, and the credit rating below a certain threshold. With a frozen LoC, there are then minimum interest payments which must be made on certain dates to ensure the amount owed is less than the maximum LoC. If the lendee defaults on weekly payments to bring outstanding debt below their LoC, then the loan can be recalled. The penalty rate would be high (double daily interest rate, perhaps), but could likely be negotiated away if the lendee shows he's actually working on repaying. It's not like I give a damn about collecting punitive fees (fees like that are why I stopped using the local bank where I live and now do all my checking [including mailing checks] with a six-branch CU two states away), I just don't want a lendee to get to that point.

But - the line between encouraging and discouraging lendee failure is blurry. I don't charge late fees on fixed loans, because I care much more about receiving principal of the loan than pissing off the person who has the power to pay me $1500 or $0 for maybe $100 extra in fees to account for the opportunity cost of lendee payment delay. It's not too difficult to make the case that punitive fees, repossession, and other actions lenders could take to reclaim something from the lendee are often not the best choice. There are many cases of foreclosed homes being gutted, all copper taken, the building in terrible condition otherwise, and then the bank sits on these properties.... and they sit, and they sit, ignoring the property they took, and then eventually they get around to listing a house which's since been used by local kids as an indoor batting cage for 1/10 the outstanding balance of the mortgage. Since I wouldn't be holding collateral, people deposit with me based on reputation even knowing I give a relatively low rate, and taking legal action would be an enormous (and extremely expensive) pain in the ass, I really don't care to jerk my lendees around.[/list]

*bookmarks & waves to Starfish*

The transfer doesn't go through in that case. Error pops up.

Might be helpful to show them www.minethings.com where they've accepted BTC for discounted in-game perks. One of the very few online games which accept BTC and aren't something like a casino. Cheers!

IOU-BLoC (formerly BDK-BLoC) is an idea I've been tossing around for a few days. I am not sure how far I want to take it, because having a website done right will be expensive. My envisioning of it:

(small number in parentheses indicates how confident I am the features/rules in the bullet point will be implemented - 0=0% chance, 10=100% chace)

• (6)BDK-BLoC will be hosted online, with a hot wallet, and allow loans to be made automatically without my manual approval (24h max of 100BTC, though lendees may reduce or disable the max amount per 24h for "automatic loans"). Obviously, a business needs to be approved for a BLoC before they can take out "automatic" loans.
• (9)Lines of credit can initially extend up to 5kBTC (most will have a LoC around 250-1500BTC). These lines of credit are established once a business registers and submits necessary info (this will require opening books to me) and the LoC will be adjusted as appropriate when businesses submit monthly financial reports. Failure to submit documents in a timely manner each month will result in a freeze of the LoC, and potentially a recall of the loan if the credit rating of the business is not particularly good. Businesses without sales to show are not eligible for a LoC.
• (7)Businesses are permitted to pay off their debt in full or in part via the website. Repayment will go to a cold wallet. Thus, an alerter system needs to be implemented which allows the website to confirm payment's been made.
  
• (10)The website will allow businesses to see their line of credit, how much cash-on-hand BDK has available to make loans with, their interest rate, what they have out (as well as repay information), and see a transaction log.
• (10)BDK-BLoC will also have a cold wallet holding thousands of BTC. Businesses will be required to submit the request, and I'll check to make sure everything's in order within 48h, and extend that credit to them - no questions, no hassles. A minimum of 8 hours must elapse before the loan is made (an email will be sent to the address the business-owner signed up with immediately after the request is made), to ensure the person who requested the loan is the actual business-owner.
• (8)2FA will be implemented, but not required. Those who don't take advantage of 2FA will be required to wait the 8 hours stated above for >100BTC requests, while those with 2FA enabled on their account will have their loans processed as soon as I review the information and approve the request.
• (9)Aside from BTC, businesses may also request PPUSD/DwollaUSD/GoxUSD loans. The LoC for these will be greatly reduced (at least for the first few months of BDK-BLoC's existence), though the interest charged per day will be significantly reduced compared to BTC. There is currently no intent to work with fiat banks beyond that (wires, direct deposits, etc). The USD loan process will never be automated, and will require I manually approve every request.
• (8)Modifiers for LoC and credit rating include (not limited to) debt-to-equity ratio, monthly sales, credit history, duration of business operation, and how publicly-known the operators and equity-holders of the company are.
• (8)BDK will set a Prime Rate and assign both credit ratings and "market cap tier" to businesses who've submitted necessary information.
• (8)There will be a small one-time fee (3BTC, perhaps) to have information reviewed and categorized by me. Your business's credit rating and "market cap tier" can be listed and used for other purposes with other individuals should you choose. It's important to note that a credit rating assigned by me only reflects my opinion of the information made available to me.
• (9)The prime BTC rate will likely be the equivalent of 2-5% monthly (likely around .1% daily). Prime USD rate would be 1-3% monthly (significantly below .1% daily).
• (7)Interest is calculated daily and compounds. Payments also amortize, and would thus reduce interest due per day, even if only partially repaid. There are no maximum loan durations for outstanding debt accumulated through the BLoC program. Thus, there are no late fees to worry about unless a business's LoC has peaked or been frozen, in which case, there'd perhaps be a bill due every week to bring the business back under their max LoC.
• (4)Any business with an established LoC will be required to publish their financial information to the public. This should be a quarterly or monthly report, and only needs to be current up to six months ago (so, say it's August, you wouldn't be *required* to publish any information more recently than February of the same year). I'll admit this is an auxiliary goal of BDK-BLoC for my own personal reasons, and isn't very relevant to BDK-BLoC's success, IMO.
• (10)I can choose to freeze a LoC at any time I choose. Additionally, if similar services pop up, I reserve the right to sell your business's debt to another bank. Obviously, you'd get a lot of notice, detailed reason, and your loan would retain the original terms.
• (3)I reserve the right to call up to 50% of a business's outstanding BDK-BLoC debt once per 30 days for any reason (some may have heard of this concept as "loan acceleration"). The called debt must be paid off within 48h, or penalties will accrue. Businesses will be alerted via every communication mode they listed if a recall is initiated. Debt recalls can only occur is a business is below a certain credit rating, and the max recall % gradually increases to 50% for those with a poor credit rating, while those with a mediocre credit rating may only have a max recall % of, say, 25% per 30 days. Businesses will be explicitly alerted to this rule if their credit rating falls into the threshold where recalls may occur.

I haven't discussed this much with anyone, yet, so please ask in this thread if you have any questions. Constructive criticisms appreciated (please be detailed and "prove" why my initial envisioning is a poor business decision). In particular, I need thoughts on how to semi-verify a company's financial numbers without being too invasive for a relatively low LoC (compared to LoCs a legal business could get from a bank). I haven't decided how to handle mining ops, yet -- originally, I only intended this to be for businesses who deal with sales and end-users. I'm thinking I'll get quotes from a dev I trust within the next few weeks after working up better documentation of my vision instead of just this jumble of ideas.   There are currently no plans by me to establish a LoC for consumers. I believe this service could launch as envisioned within two months of me committing to it. Cheers!


It's worth re-stating that "BDK"/"IOU" is absolutely not a bank.