I am interested in taking on a small hedge which pays interest. How does this work exactly?
1. Am I correct in assuming both the principal and the interest will be paid according to the USDBTC rate at the time of taking out the loan?
2. At what exact time will the exchange rate be fixed? (at the time I fund, March 19, another time?)
3. How will the repayment proceed?
a) Only pay interest and repay pricnipal at maturation date
b) Continuously repay
If b) is the repayment plan to repay large amounts first and subsequently smaller amounts (due to outstanding principal declining)?
Finally, unrelated tot his loan. Will BTCJam impose fees on me? (for depositing, withdrawing, funding a loan or receiving interest)
Hi Wachtwoord, I can answer some of you questions but not all.
1. I assume also that when the loan is completed BTCJam will calculate the current value in mtgoxusd terms for the 60 BTC and that will be the dollar value, then it will calculate 1% interest weekly again in USD terms and that will be the amount I need to repay per week in btc using current mtgox price. I am not sure on this as I did not realise until today BTCJam had implimented loans tied to the dollar.
2. I assume it is when the loan is completed and I activate it, whether that be on March 19th or sooner if it fully funds before the deadline.
3. I am not sure, I am going to pm Tulkas to see if he can come into this thread and answer your questions.
BTCJam has no fees for lenders only borrowers and only deducts a small fee for the miners fee 0.005 or something similar afaik.