Special kind of loan (loan + collateral hold by escrow all the time)

[leen93]

Hi,
I want to borrow some bitcoins (around 5) to invest in a dice website (always a trustworthy one, details in pm for current options).
But since I cannot give large amounts of collateral (since then i need to divest my own btc's for that which doesn't make sense) and because it seems people are not willing to lend money to me without collateral I came up with an idea (please read it carefully and make sure you don't misunderstand it):

Basic idea
I bear the risk of the changes of the investment while you get paid daily for providing the largest amount of the investment and giving me the leverage

How it works
I am willing to lend X BTC to invest in trustworthy dicewebsite Y.
For this the person A offering the loan will send X BTC to an extremely (he will have control over a lot of btc during a long period) trustworthy escrow agreed both on. I will send 20% of the amount (0.2*X) to the escrow. The escrow will invest this money in a dicewebsite. In case the investment comes together with losses I'll send more btc to the escrow, this will be done on a daily basis. In case the total investment goes suddenly under 1.1*X (very unlikely because deposit investment is kept at at least 1.2*X daily but not to exclude) the escrow will divest the amount of X (to make sure the worth of the provided loan (X) stays safe and asks me to send him more BTC. In case the investment goes together with profits of more than 0.1*X I will get paid the share above 1.3*X in advance. In this way the amount of BTC's kept by the escrow will be kept between 1.2 and 1.3 times the amount of the loan provided.

What do you get in return
In return there will of course be an interest
for short term loans (< 3 days) I provide the current interest rate of 0.1%
for long term loans I provide an interest of "the amount of btc wagered daily * the share of the total investment * 0.2%" (for today's stats this would have been more than 1%)* **


*this option can also be chosen for short term loans
** stats will be checked daily by the escrow or me.

To avoid misunderstanding, I never get any satoshi of the loan provided, the escrow will so the choice of the escrow in this case is very important

When you have more questions feel free to ask me but please read this post carefully to make sure you truely understand what's this about.

I'm searching for large amounts but we can always try it out with smaller amounts if interested



IT IS ALSO POSSIBLE TO INVEST THE FUNDS YOURSELF (IN RETURN FOR AN INTEREST RATE INSTEAD OF A PART OF THE PROFIT/LOSS). Read the full topic for this.

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[waterpile]

Wow, This seems alot of awful work and stress both for the escrow and the one providing the loan.
Why can't you not just buy the btc if you have cash?

[leen93]

Wow, This seems alot of awful work and stress both for the escrow and the one providing the loan.
Why can't you not just buy the btc if you have cash?

I already own a large amount of btc all invested but don't want to take any risk of a btc-price going down further. I will buy some additional btc next week but that's something next to this. I want my leverage as high as possible so I'll always be open for this.

And yes, I don't see any reason for stress for the one providing the loan. And who exactly does what (like calculating the daily intrest rate) we can agree on that or take weekly averages... We indeed need a good agreement but once set-up it should work fine.

[waterpile]

what if the dicesite decides to run with the funds, So the lender gets screwed and will trust you to pay him all back?

[leen93]

what if the dicesite decides to run with the funds, So the lender gets screwed and will trust you to pay him all back?

Then I will buy btc from my cash and pay him back. I am willing to share my identity with an escrow but the dicewebsite(s) are trustworthy.
If you see this as a risk so an disadvantage then you should compare it with the possible advantages (interest earned, getting more experience from doing this...) and make the decision to or not to provide the loan

[TwinWinNerD]

Seems like way too much hassle. Plus there is much risk when the dice site goes rouge. Sorry.

[leen93]

Someone else interested?

[jonald_fyookball]

....but you're not really "bearing the risk".  the person who puts up the funds always is the one taking the risk.

[ndnh]

Someone else interested?

Nope.

Since I also happen to know the "trustworthy dicesite Y", there are certain issues with your offer:

1. However trustworthy Y may be, Y getting hacked is a possibility that you cannot simply rule out. Too many examples of trusted sites going out because of hackers. Just look around..

2. Theoretically, it is better for the lender to simply invest it himself.
If he is unwilling to carry the risk, he invests, sends the profit/receives the loss, and you give the interest. Only such kind of trustworthiness is raarely found.

3. It has a lot of hassles and practically very difficult to implement. The carelessness of a single party can affect everyone else quite severely.

Just what I think

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[leen93]

Someone else interested?

Nope.

Since I also happen to know the "trustworthy dicesite Y", there are certain issues with your offer:

1. However trustworthy Y may be, Y getting hacked is a possibility that you cannot simply rule out. Too many examples of trusted sites going out because of hackers. Just look around..

2. Theoretically, it is better for the lender to simply invest it himself.
If he is unwilling to carry the risk, he invests, sends the profit/receives the loss, and you give the interest. Only such kind of trustworthiness is raarely found.

3. It has a lot of hassles and practically very difficult to implement. The carelessness of a single party can affect everyone else quite severely.

Just what I think

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Number 2. is actually a good idea, maybe we (me and the lender although that name is a bit wrong should both provide a collateral to an escrow an arrange weekly payments)
If you are interested in this please contact me.

[waterpile]

Like the other guy said, the lender is taking all the risk in this situation. So, maybe thats why no one is biting your offer.

[jorjito25]

I actualy didnt read the post since op is asking for loans at 0.1% interest in others threads.
Regards

[Quickseller]

I actualy didnt read the post since op is asking for loans at 0.1% interest in others threads.
Regards

He is offering .1% per day here as well. IMO it is not worth a lenders time to pursue this kind of deal and the risk of the gambling site going under is too high.

[amiryaqot]

that is nice idea to gamble with others money, in gambling no site is trustworthy every time can be run with people's money.