Kraken Fund

[Gomeler]

I'd be interesting in a one or two hundred BTC slot in Kraken 2 if it becomes a reality and the returns of Kraken The Original are decent.

[PatrickHarnett]

I'd be interesting in a one or two hundred BTC slot in Kraken 2 if it becomes a reality and the returns of Kraken The Original are decent.

(currently 19-Aug 16:00 (UTC+12) deposits of 2900.  income secured(approx): wk1 49.2, wk2 53.4, wk3 91.4)


Please bear in mind that creating value and returns is a tricky business.  As I explained to someone earlier today, with potentially 500k coins coming out of BS&T and looking for a new home availability of funds will be less of an issue.  Yesterday I secured the returns for Kraken#1 with 3000 of my own coins ahead of deposits, and there would also be good business buying up some undervalued BS&T accounts/bonds.  However, if I had 100k BTC, the few hundred coins profit would be spread much thinner and look like a 0.25% return rather than a 2.5% return.

I have some time over the next two weeks to look at this more seriously as I'm taking a break from my day-job and determine where some sustainable ventures for BTC might provide the stable and superior returns that BTC provides.  This time will also give me a chance to do some work on 7Seas which has been neglected over the past few weeks.

[bruiser]

Looks like I missed the boat on fund #1, definitely interested in securing a spot for #2 with a few hundred btc minimum.

[Electricbees]

Waiting on pirate funds to roll back to me to deposit.

Throw me on the wait list for kraken#2 if having been in kraken#1 doesn't make me a shoe-in.

Didn't hear anything from you Pat. Perhaps I was asking the wrong questions.  This is my update for you.

Thanks!

[macboy80]

Patrick. I am also interested in the next availability. Please add me to the waiting list. Preferably for #1 if there are any openings/withdraws/no shows, but #2 will do. Funds are available at this moment.

[Coin.Karma]

Hey Patrick,

Count me in please....

Kraken 2

[simonk83]

Hi Patrick,  sent you a PM.

[mb300sd]

Please let me know if you have an opening.

[Scott J]

I would love a spot in any future funds, please add me to the list for Kraken#2

[REF]

Can i get on the wait list for kraken #2?

[PatrickHarnett]

Week #1 update:

Paid units = 47 (4700BTC)
Realised Profit = 0.11BTC

Because of the BS&T turmoil and with limited liquidity on GLBSE the returns this week come from a small bond investment.  The other income currently locked in should still be paid in the next couple of weeks and is currently forecast at approximately 247BTC.  Due to the small profit this week, I would prefer to roll it into next week rather than doing a set of 25 micro payments.

Also, it would be useful for Kraken#1 Fund participants to send me an email address that I can use.  Please forward to patrick@StarfishBCB.com

[PatrickHarnett]

Actually, today I've sent 0.5319BTC per unit on all the 56 units that have been paid as the first week returned 25BTC.  This is explained in the newsletter that has been emailed to fund members.  If you did not receive a copy, that is probably because you didn't provide an email address.

[bitfoo]

Actually, today I've sent 0.5319BTC per unit on all the 56 units that have been paid as the first week returned 25BTC.  This is explained in the newsletter that has been emailed to fund members.  If you did not receive a copy, that is probably because you didn't provide an email address.

Received, thanks! The newsletter was great too - I'd invest in this fund just to get access to that.

[PatrickHarnett]

The newsletter is a bit rough because it's a first version (I should have proof read it too).  I need to check the copyright on the image.

[slider1978]

Actually, today I've sent 0.5319BTC per unit on all the 56 units that have been paid as the first week returned 25BTC.  This is explained in the newsletter that has been emailed to fund members.  If you did not receive a copy, that is probably because you didn't provide an email address.

Received, thanks! The newsletter was great too - I'd invest in this fund just to get access to that.

+1 to this. The newsletter is great!

[PatrickHarnett]

Hey Patrick,

I did not receive a newsletter you talk about in the thread. I know you have my email, could you please send me a copy?

Thanks

Sorry, was working off the ones that were sent to me recently.  Sent now.

[zebedee]

Hi Patrick,

I realise you're getting this up and running and figuring out some things as you go along, but I have some questions.  Clarity on these would be useful for all I think, including those contemplating investing in Kraken 2, as I assume it will be handled in a similar fashion.

Apologies if I've missed any of these being addressed elsewhere.

• I don't think you've said it explicitly, but it seems initial investors are entitled to increase their investment up to the individual 1,000 BTC limit?
• How do you handle increased deposits / withdrawals?  Is everyone done at par (100 BTC) with withdrawals entitled to their final week's income if any?
• What is your policy on lumpy returns? It seems unfair for someone who withdraws a week before a lumpy payout to not get any of it, but if your policy is to encourage Kraken to be held more as a long-term investment / funding commitment it makes more sense.
• Are you invested in this yourself?  Or is your incentive purely from the "excess returns"?  Again, curious how lumpiness is handled in light of this.

Thanks.

[PatrickHarnett]

Hi Patrick,

I realise you're getting this up and running and figuring out some things as you go along, but I have some questions.  Clarity on these would be useful for all I think, including those contemplating investing in Kraken 2, as I assume it will be handled in a similar fashion.

Apologies if I've missed any of these being addressed elsewhere.

• I don't think you've said it explicitly, but it seems initial investors are entitled to increase their investment up to the individual 1,000 BTC limit?
• How do you handle increased deposits / withdrawals?  Is everyone done at par (100 BTC) with withdrawals entitled to their final week's income if any?
• What is your policy on lumpy returns? It seems unfair for someone who withdraws a week before a lumpy payout to not get any of it, but if your policy is to encourage Kraken to be held more as a long-term investment / funding commitment it makes more sense.
• Are you invested in this yourself?  Or is your incentive purely from the "excess returns"?  Again, curious how lumpiness is handled in light of this.

Thanks.

Yes, some things come up that are unexpected, others are anticipated.  I appreciate the questions.

1: Yes, initial investors are permitted to increase up to the 1000 limit - I had one user add 700 coins today bringing them up to their maximum.  Initially there was scope for this to be higher, but I needed to revise that to prevent a completely unbalanced situation if someone ran a 100k passthrough.  After all, the returns are allocated across units and if only 10k can usefully be put to work, the returns for the initial investors with a few hundred would be pathetic.  (I did have an inquiry for a 7000 coin deposit.)

2: The accounts are all done in blocks of 100BTC.  I do need to clarify the withdrawal policy because it's not a case where funds are expected to be lying around, so a simple queue will operate, or else other members of the funds might wish to take over extra units.  The waitlist in the OP gives a line of people that might wish to take over a spot as well.

3: The plan is for returns to be a smooth as possible, but those in the fund currently will see that is unlikely given the current asset allocation.  Therefore, there will be some back-smoothing across weeks (up to four).

4: Currently I am not directly invested.  However, you will note that I am guaranteeing a minimum 100BTC price so am exposed to losses.  I did buy a few of the Kraken pass through bonds on GLBSE for fun.

Kraken #2 will be different - already there are features in Kraken#1 that I would probably not repeat and there are parts to it that I think will be valuable to carry forward.  Issues around size of account, risk/return structures and generating income are significant issues.  Also having a clearer "investment profile" for the fund might be useful as well, allowing those after higher returns to go one direction, and those after lower risks in another.  I am also aware there are competing funds that fill the needs of different parts of the bitcoin community and I do not wish to duplicate their models as that would not be good for bitcoin overall.

[PatrickHarnett]

There is a 300BTC space becoming available.

Newsletter #2 and a 0.5% payment for the past week have been done.

[Scott J]

There is a 300BTC space becoming available.

If I have the funds available I would love to invest. Hopefully will know in a day or two.