ASICMINER secured loan request

[Jutarul]

I'd like to restructure my portfolio for which I need $2800 on short notice. Unfortunately the GLBSE meltdown makes it difficult to easily liquidate a proportional fraction in asicminer shares. I am thus looking for one or two people to give me a $2800 loan with 2500 ASICMINER shares as collateral (~2800 USD / 11 USD/BTC / 0.1 BTC/share). The loan should be denominated in USD. However, I can pay the debt in BTC (using the current exchange rate). I'd also consider selling ASICMINER shares, but that should be at a higher price point. Please PM me your offers. Interest rates should be below 12% APR, i.e. 1% per month. Otherwise I could just go to a bank.

The reason for keeping the number of loaners low is that I don't want friedcat (one of the owners of ASICMINER) to have to handle to many claim changes in the event of me being hit by a bus. Thus please only offers for > $1000. Please know that I will honor the debt irrespective of the state of the collateral.

[Jutarul]

reserved for term updates...

Terms
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- 14 installments of 1/14 the total debt + monthly interest on the remaining debt
- not paying an installment postpones the installment schedule by one interval and increases the remaining debt by an additional charge proportional to 3 times the negotiated interest rate.
- 3 consecutive non-payments lead to a default
- the claim amount of the collateral per loaner is proportional to (total amount of collateral)*(loaned amount / total loan). E.g. if the loan is provided by 2 entities, with $1000 and $1800, and the $1000 loan defaults, the corresponding loaner can claim 2500*(1000/2800) ASICMINER shares.

[MPOE-PR]

Well other than the fact that 0.1 * 11 * 2500 = 2750 which is < 2800 and 11 is larger than the current BTC/USD rate, whereas I never heard before of collateral lower than the debt it secures nor rates higher than curent used in the evaluation of that debt, you seem to neglect both the fact that ASICMINER GLBSE shares are worth pretty much zero since GLBSE no longer exists and that the point of collateral in a lending deal is exactly to remove any consideration of your intent to repay in general.

In short, this takes a particular instrument (loan with collateral) and breaks every single characteristic that instrument has.

[Jutarul]

Well other than the fact that 0.1 * 11 * 2500 = 2750 which is < 2800 and 11 is larger than the current BTC/USD rate, whereas I never

0.1 and 11 are a simplification of the price at which I acquired the asset and the approximate price of a BTC. If somebody likes precise quantities I am open to that. The problem with ASICMINER shares is that there currently exists no mechanism for price discovery. Which makes valuation of the security in objective terms problematic.

heard before of collateral lower than the debt it secures nor rates higher than curent used in the evaluation of that debt, you seem to neglect both the fact that ASICMINER GLBSE shares are worth pretty much zero since GLBSE no longer exists

You seem to forget that GLBSE was the trading platform, it never was the holder of any rights. The funding agreement in this case exists between me and bitfountain.

and that the point of collateral in a lending deal is exactly to remove any consideration of your intent to repay in general.
In short, this takes a particular instrument (loan with collateral) and breaks every single characteristic that instrument has.

I kindly disagree. A security is a mechanism to mitigate the risk of the borrower to be unable to pay for unforeseen reasons. It is not a substitute for the intent to pay the debt.

As I mentioned, I also consider selling shares, but valuation is difficult since there is no GLBSE to find the proper free market price.