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Killerloop
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June 13, 2014, 11:56:15 AM |
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I think the in country bit is important. At least within the UK person to person transfers are free and more or less instant. However, the amount of collateral would need to cover any wire costs if it eventually *had* to be sent to the lender.
Or, in the unfortunate case the borrower defaults, the trusted escrow could buy bitcoins with local currency and send it to the lender after appropriate fees are paid. Are we dealing with cryptocurrency AND sending money overseas? This is enough to be burned at the stake imho  |
Loan request: "I need 7 BTC because We hired an archaelogist and asked him: Is there a treasure? And he said yes!"
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tertius993
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June 13, 2014, 12:03:20 PM |
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I think the in country bit is important. At least within the UK person to person transfers are free and more or less instant. However, the amount of collateral would need to cover any wire costs if it eventually *had* to be sent to the lender.
Or, in the unfortunate case the borrower defaults, the trusted escrow could buy bitcoins with local currency and send it to the lender after appropriate fees are paid. Are we dealing with cryptocurrency AND sending money overseas? This is enough to be burned at the stake imho Hmm, good point, thus introducing one (or two?) exchange rate variables ... It can certainly work but it needs to be structured carefully, and agreed exactly what the loan is for (BTC or fiat)? |
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Killerloop
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June 13, 2014, 12:08:10 PM |
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Hmm, good point, thus introducing one (or two?) exchange rate variables ...
It can certainly work but it needs to be structured carefully, and agreed exactly what the loan is for (BTC or fiat)?
BTC loan backed by fiat using BTC/USD ratio of a certain exchange. All altcoin backed loans should work like this too |
Loan request: "I need 7 BTC because We hired an archaelogist and asked him: Is there a treasure? And he said yes!"
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oppahdoggystyle (OP)
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Activity: 118
Merit: 10
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June 13, 2014, 12:10:58 PM |
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UPDATE:
Killerloop and I have come to an agreement for the loan structure. I think it would be best for the lender, Killerloop, to announce to the public the terms of the loan structure.
Also, we are awaiting for responses from people who may act as escrow. If you know anyone who can act as an escrow, and is trustworthy and has a BofA account, please let me know.
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tertius993
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June 13, 2014, 12:23:39 PM |
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Hmm, good point, thus introducing one (or two?) exchange rate variables ...
It can certainly work but it needs to be structured carefully, and agreed exactly what the loan is for (BTC or fiat)?
BTC loan backed by fiat using BTC/USD ratio of a certain exchange. All altcoin backed loans should work like this too I agree but the exchange rate moves of course. I guess if the borrower defaults they won't be getting their collateral back anyway; just thinking through scenarios in my head really. Just a further thought if the intention is that the escrow holder buys BTC to compensate the lender, ensure they have sufficient for their fees and any exchange/similar fees; plus the headroom for exchange rate changes. |
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oppahdoggystyle (OP)
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Activity: 118
Merit: 10
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June 13, 2014, 12:25:03 PM |
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Because Killerloop requires a 5% edge, I believe there is compensation for any fees related. Please see terms of agreement.
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Killerloop
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June 13, 2014, 12:30:55 PM |
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I agree but the exchange rate moves of course. I guess if the borrower defaults they won't be getting their collateral back anyway; just thinking through scenarios in my head really.
Just a further thought if the intention is that the escrow holder buys BTC to compensate the lender, ensure they have sufficient for their fees and any exchange/similar fees; plus the headroom for exchange rate changes.
My "0% risk model" works exactly like that: I required a 5% edge to allow breathing room for the volatility. I actually requested 10% but oppahdoggystyle was already comfortable with 5%  I will not wait for his eventual default at all, once the provided collateral (USD) is barely enough to purchase the expected amount BTC + escrow fees I'll seize the collateral and the loan will end. I'm sure we will not come to this. |
Loan request: "I need 7 BTC because We hired an archaelogist and asked him: Is there a treasure? And he said yes!"
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tertius993
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June 13, 2014, 12:43:02 PM |
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I agree but the exchange rate moves of course. I guess if the borrower defaults they won't be getting their collateral back anyway; just thinking through scenarios in my head really.
Just a further thought if the intention is that the escrow holder buys BTC to compensate the lender, ensure they have sufficient for their fees and any exchange/similar fees; plus the headroom for exchange rate changes.
My "0% risk model" works exactly like that: I required a 5% edge to allow breathing room for the volatility. I actually requested 10% but oppahdoggystyle was already comfortable with 5% I will not wait for his eventual default at all, once the provided collateral (USD) is barely enough to purchase the expected amount BTC + escrow fees I'll seize the collateral and the loan will end. I'm sure we will not come to this. That sounds sensible. I too am sure it won't come to that either, this has certainly been amongst the more grown-up conversations in this section ...  |
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oppahdoggystyle (OP)
Member
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Activity: 118
Merit: 10
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June 13, 2014, 12:45:37 PM |
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I agree but the exchange rate moves of course. I guess if the borrower defaults they won't be getting their collateral back anyway; just thinking through scenarios in my head really.
Just a further thought if the intention is that the escrow holder buys BTC to compensate the lender, ensure they have sufficient for their fees and any exchange/similar fees; plus the headroom for exchange rate changes.
My "0% risk model" works exactly like that: I required a 5% edge to allow breathing room for the volatility. I actually requested 10% but oppahdoggystyle was already comfortable with 5% I will not wait for his eventual default at all, once the provided collateral (USD) is barely enough to purchase the expected amount BTC + escrow fees I'll seize the collateral and the loan will end. I'm sure we will not come to this. That sounds sensible. I too am sure it won't come to that either, this has certainly been amongst the more grown-up conversations in this section ... Well, it is a loan so I think grown-up conversation is a basic requirement. |
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bitpop
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Merit: 1060
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June 13, 2014, 10:21:14 PM |
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Sorry I can't hold usd
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monbux
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Merit: 1029
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June 14, 2014, 01:24:55 AM |
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If you would like me to act as an escrow - I can try to see what I can do. What are your methods of sending the USD?
I believe Danny probably would accept USD as well.
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haploid23
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Activity: 812
Merit: 1002
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June 14, 2014, 06:20:09 AM |
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I can escrow if you want me to. I'm in the US and have a BofA account. I've provided a few large loans and ran group buys before. No hard feelings if you don't want me to |
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gondel
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Activity: 1946
Merit: 1005
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June 14, 2014, 10:11:57 AM |
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I am curious if fiat like USD count as collateral on bitcointalk's lending section.
Hello, I think it can be accepted, but not sure if you need to provide the amount of the loan plus 10% or it is negotiable.. Cna someone explain exactly how it is done? I can provide small loan if you provide a stable alt crypto as collateral BR Gondel |
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haploid23
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Merit: 1002
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June 14, 2014, 10:33:32 AM |
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I am curious if fiat like USD count as collateral on bitcointalk's lending section.
Hello, I think it can be accepted, but not sure if you need to provide the amount of the loan plus 10% or it is negotiable.. Cna someone explain exactly how it is done? I can provide small loan if you provide a stable alt crypto as collateral BR Gondel You didn't bother reading the thread, why bother replying? |
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