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[jasinlee]

.

[Nefario]

You might try hiring someone to help you write the contract.

ColdHardMetal has said on the forums that he's willing to do so, and he's quite good.

[🏰 TradeFortress 🏰]

Give me a few shares and I'll write the contract for you.

[jasinlee]

Got references?

[silverbox]

Due to headaches with attempting to get assistance from customer service at GLBSE, and refusal to just simply refund the fee or assist with how to phrase a contract to get approved I am asking the forum to help me to iron out any problems so I dont simply "donate" my BTC to GLBSE since that makes perfect sense. Please poke holes in it and let me know if there is something wrong that I could possibly lose my BTC for the IPO. Hopefully someone can point out any problems before they get out of hand. Its 3 AM here and I have been researching this for a while and am tired. If my math looks wrong please point it out also and I will update after I get sleep.

Equipment will be insured against theft and fire.

Initial Equipment:
1 PC to host FPGA/ASIC/GPUs
3 Jalepeno ASIC's preordered (6/23 order)
1 Single upgrade to ASIC preordered (6/3 order)

8000@1 BTC

The Plan:

The plan is to purchase, with IPO funds, ASIC Singles and Mini Rig 'SC' Units from Butterfly Labs, in single unit purchases.  It is possible that a few GPUs will be purchased and/or Butterfly labs FPGA singles to increase dividends during the waiting period for ASIC hardware to arrive.  Final Mhash/s per share ratio is expected to be 300+ Mhash/s per share after asics begin to arrive.


The Contract:

WAHMINE (WAHMINE) is an ASIC/FPGA/GPU mining company.  75% of all net mining revenue (income minus expenses for repairs to mining equipment or other incidentals, operator is covering cost of electricity and will not pass the expense to shareholders) will be  returned to the shareholders. The operater will direct the day to day operations and the remaining revenue of 25% will be used toward new upgrades and equipment. Initial (pre IPO) hashing power (already ordered) will consist of ~10.5 GH/s (Jalapenos) and ~40 GH/s (Single 'SC') for a total of ~50.5 GH/s for now (GPU/FPGA mix). In the event of complete liquidation,  100% of the proceeds will go to the shareholders.  The operator of the company reserves the right regardless of the number of shares held to liquidate the company's assets and cease operations. Any motions raised by shareholders will be considered advisory and non binding, and hold no voting rights. Dividends will be issued monthly on the 30th of the month.

This contract looks strangely familiar

[jasinlee]

Yeah copypasta from one that looked purty.

[🏰 TradeFortress 🏰]

Got references?

yeah, my dog

[jasinlee]

Got references?

yeah, my dog

I'm sorry, I am looking for someone that is not screwing the pooch.

[Bitcoin Oz]

Got references?

yeah, my dog

I'm sorry, I am looking for someone that is not screwing the pooch.

hahah awesome.

[jasinlee]

Any suggestions that are serious?

[Bitcoin Oz]

Any suggestions that are serious?

I suggest you contact CHM because he writes awesome contracts.

[jasinlee]

Any suggestions that are serious?

I suggest you contact CHM because he writes awesome contracts.

Alrighty, anything else you guys see I left out or should add and I will contact CHM and give it all over to him?

[Bitcoin Oz]

Any suggestions that are serious?

I suggest you contact CHM because he writes awesome contracts.

Alrighty, anything else you guys see I left out or should add and I will contact CHM and give it all over to him?

I would suggest contacting the person you copied the contract off and seeking permission forst

[jasinlee]

He already posted here, but already sent PM to CHM, so this will probably all be rewritten. Imitation is the best form of flattery.

[Korbman]

Due to headaches with attempting to get assistance from customer service at GLBSE, and refusal to just simply refund the fee or assist with how to phrase a contract to get approved I am asking the forum to help me to iron out any problems so I dont simply "donate" my BTC to GLBSE since that makes perfect sense. Please poke holes in it and let me know if there is something wrong that I could possibly lose my BTC for the IPO. Hopefully someone can point out any problems before they get out of hand. Its 3 AM here and I have been researching this for a while and am tired. If my math looks wrong please point it out also and I will update after I get sleep.

Equipment will be insured against theft and fire.

Initial Equipment:
1 PC to host FPGA/ASIC/GPUs
3 Jalepeno ASIC's preordered (6/23 order)
1 Single upgrade to ASIC preordered (6/3 order)

8000@1 BTC

The Plan:

The plan is to purchase, with IPO funds, ASIC Singles and Mini Rig 'SC' Units from Butterfly Labs, in single unit purchases.  It is possible that a few GPUs will be purchased and/or Butterfly labs FPGA singles to increase dividends during the waiting period for ASIC hardware to arrive.  Final Mhash/s per share ratio is expected to be 300+ Mhash/s per share after asics begin to arrive.


The Contract:

WAHMINE (WAHMINE) is an ASIC/FPGA/GPU mining company.  75% of all net mining revenue (income minus expenses for repairs to mining equipment or other incidentals, operator is covering cost of electricity and will not pass the expense to shareholders) will be  returned to the shareholders. The operater will direct the day to day operations and the remaining revenue of 25% will be used toward new upgrades and equipment. Initial (pre IPO) hashing power (already ordered) will consist of ~10.5 GH/s (Jalapenos) and ~40 GH/s (Single 'SC') for a total of ~50.5 GH/s for now (GPU/FPGA mix). In the event of complete liquidation,  100% of the proceeds will go to the shareholders.  The operator of the company reserves the right regardless of the number of shares held to liquidate the company's assets and cease operations. Any motions raised by shareholders will be considered advisory and non binding, and hold no voting rights. Dividends will be issued monthly on the 30th of the month.

I'm happy to help a bit..or at least throw in my 2cents.

First, regarding the plan:
I'm assuming this is a..bond? Not quite clear, but usually for company equipment purchases Bonds are used over Stock. I don't have an issue with Mining Bonds like others do (and not because I have my own IPO out there). Mining Bonds are notoriously low risk when implemented correctly, mainly since mining is predictable (you can figure out how many BTCs you'll get at a certain difficulty, etc).

One thing the plan is missing, however, is detail. You're looking for 8,000 BTC ($100,000USD) for ASIC devices, but for how many? Where are your financials that show how purchases will be made, Buybacks/Dividends paid, timeframe on how everything will happen, etc. What if you only raise 4,000 BTC, how does your plan change?
What about electricity requirements, insurance costs, bandwidth costs, or other fixed expenses?

Regarding the contract:
Like the plan, you need detail, detail, detail. Contracts are legally bind agreements that link you to your investors. Be as detailed as you can when creating a contract. Tell us how everything will play out when I invest my 1 BTC with you. Where will that coin go? When can I start to see I return? What happens if everything fails?


These are just starter questions of course, but remember that the biggest thing you can do for investors is transparency. Let us know exactly what you want to do with our money, let us see where our money goes, and show to us that you can maintain a ridged scheduled payback (Buybacks if bonds, dividends if stock).

Oh, and..

Due to headaches with attempting to get assistance from customer service at GLBSE, [...] I am asking the forum to help me to iron out any problems so I dont simply "donate" my BTC to GLBSE.

+1 good sir...I'm starting to feel the same way, but I keep hoping things will turn around soon.


You can check out my current layout here: https://bitcointalk.org/index.php?topic=112232.0
I've got a Google Doc that leads to my finances (two pages, one of data, the other of my actual 15 month financial plan).
It's not perfect (and feedback is always appreciated), but it should still help out a bit.

[jasinlee]

Ok, so it would be best to issue a bond got it. The long term plan assuming all the shares are sold would be to purchase 3 SC rigs for 3k gh. But that is a bit optimistic I think considering GLBSE's attitude toward customers. So will just use the equipment on order already to mine with until we reach the first threshold (2560 shares roughly) to put in the first order for the SC rig. So raising only 4000btc wouldnt be bad as we would have our first order placed at that point and working on another already. As I will be taking a portion of the profits the electricity is already going to get paid regardless by me by my job (I work for the company who provides my bandwidth so thats not an issue.) The only real fixed expense is electricity and I will be paying it anyway so will accept that expense. But thanks for pointing that out will update it when I am done with this post.

The contract, I dont know how to write one up, I pmd someone already to see if they could write it since glbse does not have any requirements posted or templates I can use as a guide. I will see what CHM says.

How would it be stated for the buybacks to make the contract acceptable? I would like to make sure I have that written out correctly. Basically I want to begin buybacks after I get the first ASIC running I will use my portion of the profits (Assuming anything is left after any unforseeables) to buy back bounds as I go. What is a fair buyback rate generally?

I'm happy to help a bit..or at least throw in my 2cents.

First, regarding the plan:
I'm assuming this is a..bond? Not quite clear, but usually for company equipment purchases Bonds are used over Stock. I don't have an issue with Mining Bonds like others do (and not because I have my own IPO out there). Mining Bonds are notoriously low risk when implemented correctly, mainly since mining is predictable (you can figure out how many BTCs you'll get at a certain difficulty, etc).

One thing the plan is missing, however, is detail. You're looking for 8,000 BTC ($100,000USD) for ASIC devices, but for how many? Where are your financials that show how purchases will be made, Buybacks/Dividends paid, timeframe on how everything will happen, etc. What if you only raise 4,000 BTC, how does your plan change?
What about electricity requirements, insurance costs, bandwidth costs, or other fixed expenses?

Regarding the contract:
Like the plan, you need detail, detail, detail. Contracts are legally bind agreements that link you to your investors. Be as detailed as you can when creating a contract. Tell us how everything will play out when I invest my 1 BTC with you. Where will that coin go? When can I start to see I return? What happens if everything fails?


These are just starter questions of course, but remember that the biggest thing you can do for investors is transparency. Let us know exactly what you want to do with our money, let us see where our money goes, and show to us that you can maintain a ridged scheduled payback (Buybacks if bonds, dividends if stock).

Oh, and..

Due to headaches with attempting to get assistance from customer service at GLBSE, [...] I am asking the forum to help me to iron out any problems so I dont simply "donate" my BTC to GLBSE.

+1 good sir...I'm starting to feel the same way, but I keep hoping things will turn around soon.


You can check out my current layout here: https://bitcointalk.org/index.php?topic=112232.0
I've got a Google Doc that leads to my finances (two pages, one of data, the other of my actual 15 month financial plan).
It's not perfect (and feedback is always appreciated), but it should still help out a bit.

[Korbman]

Ok, so it would be best to issue a bond got it. The long term plan assuming all the shares are sold would be to purchase 3 SC rigs for 3k gh. But that is a bit optimistic I think considering GLBSE's attitude toward customers. So will just use the equipment on order already to mine with until we reach the first threshold (2560 shares roughly) to put in the first order for the SC rig.

But that would mean you'd need no less than 9,000BTC to make the purchases? Or are you just looking for 8,000 to get started (and judge how your investors feel) and then increase the amount later on to cover the other SC purchases and whatever else?

Other than that, mining with your initial equipment is a decent way to build up a little equity until the IPO is fully underway.

The contract, I dont know how to write one up, I pmd someone already to see if they could write it since glbse does not have any requirements posted or templates I can use as a guide. I will see what CHM says.

Cool beans. I'm curious to see how CHM formulates out contracts for people, so update us when it's all set!

How would it be stated for the buybacks to make the contract acceptable? I would like to make sure I have that written out correctly. Basically I want to begin buybacks after I get the first ASIC running I will use my portion of the profits (Assuming anything is left after any unforseeables) to buy back bounds as I go. What is a fair buyback rate generally?

Honestly, it's a bit hard to answer since it all depends on your finances. I have my Buybacks structured in a way that increases over time, starting with a period of 1.10BTC (initial value of the Bonds is 1.0BTC), and eventually increasing to 1.20. I can do this because I'm buying back a certain percentage of Bonds per month, and mining would cover the costs of the percentage. You'll also need to take into account Coupon Rates, which represent the interest on the Bond returned to investors. For example, my Rate starts at 1% during the months when mining isn't taking place, and this amount is by and large paid out of my own pocket. It's only until mining takes place and there is an income that I can increase the Rate.

[jasinlee]

The 9000 would be overkill as the current price of btc is about 12.10 so the amount needed to purchase 3 units would be about 7438.02 BTC and I wont be buying them all at once anyhow. I would like to but I doubt its likely. I do not want to issue to many and screw up my numbers either, I figure 8000 should cover any possible declines in prices whenever we get around the third unit. If it goes that well, then of course I would issue further securities or purchase it from my own profits for further units.

For the initial equipment, I was thinking it would cover the 1% coupon until mining officially begins that you are describing. I had read up on that on other contracts and thought it was a good way to keep investors happy, especially on bitcoin securities as we are a very impatient lot.

edit: Updated the OP. Not sure how to implement/state the coupon though. Will look around the site some more, see if I can find more information on all of it.