Flexcoin Invites

[the founder]

I'll look into that,  if you registered it should have worked pm me your address you used

[BitMofo]

Hi,

Does your bank offer any insurance policy in terms of if you got shut down for instance or hacked, would our money still be safe and backed up under some kind of insurance? Really like what you've done though, the bitcoin community needs something like this so thank you for all your hard work!
Also are payments to and from exchange sites such as MtGox or Britcoin fine?

[the founder]

Hi,

Does your bank offer any insurance policy in terms of if you got shut down for instance or hacked, would our money still be safe and backed up under some kind of insurance? Really like what you've done though, the bitcoin community needs something like this so thank you for all your hard work!
Also are payments to and from exchange sites such as MtGox or Britcoin fine?

Ok you hit on a few topics...  I'll try to answer.

1 - We are in discussion with one of the exchanges right now..  it's not finalized but the concept is 100% fee-less transfers from the bank to the exchange and back.    This however is early in discussion..  (one of the exchanges would be using a flexcoin id,  hence allowing for free transfers).  Right now you can send it to any exchange you want just like you would with your desktop client.

2 - Insurance,  this is a tricky problem.   The FDIC does not recognize bitcoins,  much less insure them.    We are 1000000% open to it,  it's just that the exchanges are not in a position to cover losses considering they have enough problems on their own (Goxed, or tradehill getting Dwollaed)

So we're looking at valid solutions,  but most insurance companies don't understand what a bitcoin is,  much less willing to insure them (based on recent media blasts regarding theft, etc)

[kiba]

Hi,

Does your bank offer any insurance policy in terms of if you got shut down for instance or hacked, would our money still be safe and backed up under some kind of insurance? Really like what you've done though, the bitcoin community needs something like this so thank you for all your hard work!
Also are payments to and from exchange sites such as MtGox or Britcoin fine?

Ok you hit on a few topics...  I'll try to answer.

1 - We are in discussion with one of the exchanges right now..  it's not finalized but the concept is 100% fee-less transfers from the bank to the exchange and back.    This however is early in discussion..  (one of the exchanges would be using a flexcoin id,  hence allowing for free transfers).  Right now you can send it to any exchange you want just like you would with your desktop client.

2 - Insurance,  this is a tricky problem.   The FDIC does not recognize bitcoins,  much less insure them.    We are 1000000% open to it,  it's just that the exchanges are not in a position to cover losses considering they have enough problems on their own (Goxed, or tradehill getting Dwollaed)

So we're looking at valid solutions,  but most insurance companies don't understand what a bitcoin is,  much less willing to insure them (based on recent media blasts regarding theft, etc)

You will not do fractional reserve banking, correct? Do you have that in your TOS? The insurance won't mean a thing.

[BitMofo]

Hi,

Does your bank offer any insurance policy in terms of if you got shut down for instance or hacked, would our money still be safe and backed up under some kind of insurance? Really like what you've done though, the bitcoin community needs something like this so thank you for all your hard work!
Also are payments to and from exchange sites such as MtGox or Britcoin fine?

Ok you hit on a few topics...  I'll try to answer.

1 - We are in discussion with one of the exchanges right now..  it's not finalized but the concept is 100% fee-less transfers from the bank to the exchange and back.    This however is early in discussion..  (one of the exchanges would be using a flexcoin id,  hence allowing for free transfers).  Right now you can send it to any exchange you want just like you would with your desktop client.

2 - Insurance,  this is a tricky problem.   The FDIC does not recognize bitcoins,  much less insure them.    We are 1000000% open to it,  it's just that the exchanges are not in a position to cover losses considering they have enough problems on their own (Goxed, or tradehill getting Dwollaed)

So we're looking at valid solutions,  but most insurance companies don't understand what a bitcoin is,  much less willing to insure them (based on recent media blasts regarding theft, etc)

Sounds good. Are you also planning on implementing a built in exchange one day? IE I could bank transfer some money in exchange for Bitcoins directly through the bank?

In regards to insurance, would it not be possible to insure the company concept for a substantial sum? As in ensure the security measures you have taken?

Finally, you're calling yourself a bank, doesn't that require some sort of disclaimer or legal certificate of some sort? Or are you exempt because you are dealing with bitcoins?

Just made my first bitcoin transfer to my account with no problems, very smooth, money was in within a few minutes.

[the founder]

You will not do fractional reserve banking, correct? Do you have that in your TOS? The insurance won't mean a thing.

I think this would clear it up for you.

http://www.flexcoin.com/?page_id=148

70% of the fees collected are disbursed to the account holders as interest payments, based on the following formula…

(your account balance / total balance of all flexcoin accounts) * ((all fees collected – miner fees) * 0.7)


To answer your question we don't loan out bitcoins..  way to risky.

[the founder]

Sounds good. Are you also planning on implementing a built in exchange one day? IE I could bank transfer some money in exchange for Bitcoins directly through the bank?

In regards to insurance, would it not be possible to insure the company concept for a substantial sum? As in ensure the security measures you have taken?

Finally, you're calling yourself a bank, doesn't that require some sort of disclaimer or legal certificate of some sort? Or are you exempt because you are dealing with bitcoins?

Just made my first bitcoin transfer to my account with no problems, very smooth, money was in within a few minutes.

Cool so you had no problems   I want to stress of course it's still invite only so if you see ANY bugs post here right away.

We're a bitcoin bank... and have no intention of trading in USD or any government backed currency,  so we will one day partner with one of the exchanges (allow for free transfers or something along those lines) with one of the exchanges.. but the second we start taking USD the paperwork hits the roof.

[kiba]

You will not do fractional reserve banking, correct? Do you have that in your TOS? The insurance won't mean a thing.

I think this would clear it up for you.

http://www.flexcoin.com/?page_id=148

70% of the fees collected are disbursed to the account holders as interest payments, based on the following formula…

(your account balance / total balance of all flexcoin accounts) * ((all fees collected – miner fees) * 0.7)


To answer your question we don't loan out bitcoins..  way to risky

But do you have it in your TOS that you don't do fractional reserve banking and that it is your responsiblity to ensure that the balance shown is actually what you have?

Also, do you have a process for reimbursing people's bitcoin in case of successful security breach?

[the founder]

You will not do fractional reserve banking, correct? Do you have that in your TOS? The insurance won't mean a thing.

I think this would clear it up for you.

http://www.flexcoin.com/?page_id=148

70% of the fees collected are disbursed to the account holders as interest payments, based on the following formula…

(your account balance / total balance of all flexcoin accounts) * ((all fees collected – miner fees) * 0.7)


To answer your question we don't loan out bitcoins..  way to risky

But do you have it in your TOS that you don't do fractional reserve banking and that it is your responsiblity to ensure that the balance shown is actually what you have?  --- yes we do

http://www.flexcoin.com/?page_id=118  (TOS)

Your Account : Flexcoin uses a central wallet to store bitcoins,  it means that an identical number of bitcoins will be available to you at any time.   Just like a bank account,  if you deposit $100 dollars one day at the teller,  and the next you go to an ATM and withdraw $100 it’s not the exact same bill you handed the cashier the day before, but it’s identical in value.

http://www.flexcoin.com/?page_id=15 (Regarding the loaning out of bitcoins)

Q: Will you loan out my bitcoins?

A: No, we will not loan out anyone’s bitcoins.



Also, do you have a process for reimbursing people's bitcoin in case of successful security breach? 

-- yes we do,  however it's still limited... we have a very basic one (we setup a fund to buy coins in case something goes haywire.. but in all honesty we need something more robust).

[BitMofo]

How regular are interest payments? Daily? Weekly? Monthly?

Also, in terms of accounts, we have a username and a password. Are you going to make these more secure in future? Because at the moment a keylogger could get straight into anybodies account. Will you have similar measures that online banks take?

[kiba]

Alright, I am moving some of my money to flexcoin. It will be a small amount though. If there is more online wallet/bank service, I will also move small amount of money depending on how well the questions are answered.

Never have all your money in one basket.

[joulesbeef]

Was there actually a page to register for an invite?

I tried just registering and it said I didnt have an invite, this was yesterday.

[the founder]

Alright, I am moving some of my money to flexcoin. It will be a small amount though. If there is more online wallet/bank service, I will also move small amount of money depending on how well the questions are answered.

Never have all your money in one basket.

Understood...   I've been in business long enough to know trust is earned...    so I hope to provide the best service possible so you continue to use us in the future.

[dinox]

How do I get an invite?

[thefussydutchman]

^ you don't get one. We missed out.

[nhodges]

You will not do fractional reserve banking, correct? Do you have that in your TOS? The insurance won't mean a thing.

I think this would clear it up for you.

http://www.flexcoin.com/?page_id=148

70% of the fees collected are disbursed to the account holders as interest payments, based on the following formula…

(your account balance / total balance of all flexcoin accounts) * ((all fees collected – miner fees) * 0.7)


To answer your question we don't loan out bitcoins..  way to risky.

Any information on my other questions? You've semi answered about fee schedules, but what happens if not enough transfers are made to pay out interest?

How is the interest generated? Are you providing loans similar to other banking services, or are you charging fees as with checking services? Where can I sign up for a loan? How are you enforcing collection on these loans?

PS two more questions, where can I see going interest rates, and how do you decide when and how to change these rates?

[the founder]

There's always enough to make interest payments.    Bitcoins can be divided to fractions of fraction of a fraction...     

Regarding the advice that some people provided.   

Now after 5 failed attempts at logins it disables you for a period of time...    That was suggested yesterday and I wanted you guys to know that we're taking your advice seriously... and implementing it.

We're also going to increase max password length...  and invites will be removed either by end of night tonight or tomorrow AM (EST) ...   Meaning that it's going to be open to everyone...

[fabianhjr]

There's always enough to make interest payments.    Bitcoins can be divided to fractions of fraction of a fraction...     

Regarding the advice that some people provided.   

Now after 5 failed attempts at logins it disables you for a period of time...    That was suggested yesterday and I wanted you guys to know that we're taking your advice seriously... and implementing it.

We're also going to increase max password length...  and invites will be removed either by end of night tonight or tomorrow AM (EST) ...   Meaning that it's going to be open to everyone...

So for instance if I know what is you account and fail 5 times at providing a valid authentication, we both get banned for a bit?

[nhodges]

There's always enough to make interest payments.    Bitcoins can be divided to fractions of fraction of a fraction...     

Regarding the advice that some people provided.   

Now after 5 failed attempts at logins it disables you for a period of time...    That was suggested yesterday and I wanted you guys to know that we're taking your advice seriously... and implementing it.

We're also going to increase max password length...  and invites will be removed either by end of night tonight or tomorrow AM (EST) ...   Meaning that it's going to be open to everyone...

What I am asking is how are you guaranteeing the interest? Just because you say it is doesn't make it so.

[BitMofo]

There's always enough to make interest payments.    Bitcoins can be divided to fractions of fraction of a fraction...    

Regarding the advice that some people provided.  

Now after 5 failed attempts at logins it disables you for a period of time...    That was suggested yesterday and I wanted you guys to know that we're taking your advice seriously... and implementing it.

We're also going to increase max password length...  and invites will be removed either by end of night tonight or tomorrow AM (EST) ...   Meaning that it's going to be open to everyone...

This is great except that I know that your login is "president". What's to stop me getting you locked out? You need to implement an IP log into the system, so that when you're logging in from a familiar IP it's a different game and you should be able to log straight in even if account was locked by someone hundreds of miles away?

Even better, we should be logging in with our PRIVATE email addresses, and only using our usernames for transfers =] What do you think?