[Havelock] Bitcoin Difficulty Derivative (BDD)

[twentyseventy]

I support your proposal to add the 2% management fee.  It works out to only about $2/new EXCH share.  And the only ones affected are arbitrageurs who want to profit from various price discrepancies.  To them, it's just another cost of doing business.  All of us benefit from  the liquidity they provide.  You have committed to daily management of these funds for at least the next 6 months.  I want you to continue to administer for the long haul, and to feel that you are being adequately compensated for your time and trouble.  Your proposal is transparent and easy to understand by all.  Anyone who feels it's not worth it can just take their investment funds to another Havelock offering.  Go for it!

Thanks for the input - it will affect non-arbitrageurs as well (basically, anyone who purchases a share of EXCH), but not to what I consider to a very significant degree. It is a long-term time commitment to the fund, so I do think that it's justified as well.

I did also receive an email from a shareholder (who I presume doesn't have a bitcointalk account) in support of the management fee. Further comments still welcomed-

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[twentyseventy]

Period 3, Day 8 Report - February 24, 2014

Balance Post Divs: BTC 419.87732818

Total Units: 2702

NAV/U: BTC 0.15539501


Please be sure to read the latest update and feel free to provide feedback here on the thread or directly to me at bitcoinderiv@gmail.com

[MonkeyBear68]

I also have no problem with the fee. You need to be compensated for doing all the busy-work that is involved with these three funds. You also seem very dedicated to providing quick responses on this forum, so it is only fair that you earn something. These three funds are a lot like baccarat (except that difficulty also determines the outcome in addition to luck), so 2% for the "house" is reasonable.

[junkonator]

I'm ok with the 2% man fee. But as the fee affects arbitrageurs more than others, I'd like to see the auto-exchange first. That would be some kind of value for the additional fee.

I second this. That's a fair condition. Get auto-exchange up, have it running for a week or two to make sure it works properly, then pass a motion for mgmt fee.

[ZephramC]

I'm ok with the 2% man fee. But as the fee affects arbitrageurs more than others, I'd like to see the auto-exchange first. That would be some kind of value for the additional fee.

I second this. That's a fair condition. Get auto-exchange up, have it running for a week or two to make sure it works properly, then pass a motion for mgmt fee.

I also think this is a fair proposal.

[twentyseventy]

I also have no problem with the fee. You need to be compensated for doing all the busy-work that is involved with these three funds. You also seem very dedicated to providing quick responses on this forum, so it is only fair that you earn something. These three funds are a lot like baccarat (except that difficulty also determines the outcome in addition to luck), so 2% for the "house" is reasonable.

I'm ok with the 2% man fee. But as the fee affects arbitrageurs more than others, I'd like to see the auto-exchange first. That would be some kind of value for the additional fee.

I second this. That's a fair condition. Get auto-exchange up, have it running for a week or two to make sure it works properly, then pass a motion for mgmt fee.

I also think this is a fair proposal.

Thanks for the input, guys - spoke with Havelock tonight and they're working on the AutoExch feature. Their dev has been out of town lately with family, but I've been assured he's working on it -  they're hoping to have it up before the end of the month. However, both they and I don't want to make any promises that they can't keep, so it may be sometime into March before it's done. They've had a massive couple of days with the IRL launch of NEOBEE and the resultant new traffic, so I'm inclined to give them some slack on this one.

It's in both my and the shareholders best interest to have it up and running, so I've asked them to make it their top priority for BDD. That being said, support for the management fee has been unanimous, obviously with some caveats that the AutoExch be up first. So for the time being, I'll plan to wait until AutoExch is implemented, ensured to be working, and then plan to implement the fee after that time.

EDIT: Words

[twentyseventy]

Period 3, Day 9 Report - February 25, 2014

Balance Post Divs: BTC 444.56801273

Total Units: 2869

NAV/U: BTC 0.15495573


Those EXCH that were purchased between 1155 and 1200 were bought-back for their respective MINE dividends that they missed.

Please be sure to read the latest update and feel free to provide feedback here on the thread or directly to me at bitcoinderiv@gmail.com

[redmetal]

I am happy with the increased fee. My only concern would be, if its this simple to change the fee up, what is stopping you to do so again in the near future.
In saying that,  you have done a fantastic job thus far, making it worth the extra premium.

[twentyseventy]

I am happy with the increased fee. My only concern would be, if its this simple to change the fee up, what is stopping you to do so again in the near future.
In saying that,  you have done a fantastic job thus far, making it worth the extra premium.

Thanks for saying so, I appreciate it. I think we've all been shareholders in more than a few funds with less-than-stellar communication, so I always pledged that I wouldn't succumb to that if/when I became a fund manager/issuer.

That's actually a good point that you bring up. If the 2% management fee is instituted, I will not ask for any higher management fees or additional fees to be paid to me as the Issuer for this Round.

The Round is defined as the time from the first shares of EXCH being sold until the End-Game via Decrease or Increase - basically for the next 6/9/12/etc. months that BDD runs for (until the funds are totally paid out). We're currently in Day 10 of Period 3 of Round 1 (in case anyone was wondering!).

I'm still reserving the right to possibly change the management fee for the next Round, but not necessarily planning to. At that point there will be a brand new contract for prospective speculators to review prior to the Round beginning instead of a mid-stream change like this.

[twentyseventy]

Period 3, Day 10 Report - February 26, 2014

Balance Post Divs: BTC 460.59955970

Total Units: 2983

NAV/U: BTC 0.15440816


Please be sure to read the latest update and feel free to provide feedback here on the thread or directly to me at bitcoinderiv@gmail.com

[twentyseventy]

Period 3, Day 11 Report - February 27, 2014

Balance Post Divs: BTC 477.02205590

Total Units: 3100

NAV/U: BTC 0.15387808


Please be sure to read the latest update and feel free to provide feedback here on the thread or directly to me at bitcoinderiv@gmail.com

[twentyseventy]

Period 3 End Report - February 28, 2014


Previous Units              1921
EXCH Sold                   1201
Less Buybacks              0
New Total Units            3122

Previous Balance          308.69318805
Price per EXCH             0.16230094
Gross Sales of EXCH      194.92342894

Less Fees                    0.77969346
Less Dividends              22.25852941
Less Buybacks              0
Net Balance                  480.57839412


End of Period 3 NAV/U     0.15393286

New Difficulty               3,815,723,799
New Daily Dividend      0.00065899
New Reserve                0.13179800

NAV/U Less New Reserve = .1539286 - .13179800 = .02213486

SELL Dividend                 0.02213486

You'll notice that I calculate the new Dividend to eight digits and multiply that times 200 Days to get the new Reserve. Those of you that did your own calculations may come up with a slightly different number if you chose not to round or to round elsewhere.

New EXCH Sales Price          0.13311598


MINE and SELL Dividends will be paid at Noon, like normal, I just have the report done early since there weren't any last minute EXCH sales before the 11AM cutoff.

The new management fee has not yet been instituted. I'm hoping that Havelock will have the AutoExchange function up soon so that it can be tested and, after that, I'll be looking to put it into effect.

[Inspire]

Hi twentyseventy,

Does the dividend get paid into our account? So even though its scheduled for payment, you have to wait for it to go into your account before you want to release the share?

Thanks.

[twentyseventy]

For some reason the dividend hasn't gone out at Noon like it was supposed to for MINE and SELL - awaiting a call back from Havelock and will update ASAP.

[twentyseventy]

Hi twentyseventy,

Does the dividend get paid into our account? So even though its scheduled for payment, you have to wait for it to go into your account before you want to release the share?

Thanks.

Hi Inspire - yes, the dividend is paid directly into your Havelock account. You also receive an email when that happens - for some reason, the dividend didn't post today like it was supposed to at Noon - will update here with news.

[Inspire]

Ive got it now. Thanks for that last post of yours!

[twentyseventy]

Havelock was able to manually push the dividends out - I'll be seeing what we can do in the future to keep that issue from arising.

Period 4, Day 0 Report - February 28, 2014

Balance Post Divs: BTC 409.41599442

Total Units: 3122

NAV/U: BTC 0.13113901


As you can see, I'm now going to start the first day of the Period at Day 0 instead of Day 1, since this is the inception of the period and there cannot have been any sales of EXCH yet.

[eltopo]

I guess the one who sold into the B.SELL bids at 7 minutes after noon... failed 

[twentyseventy]

I guess the one who sold into the B.SELL bids at 7 minutes after noon... failed 

I saw that - everyone looking to sell their shares post-dividend needs to wait until they get the dividend email or they see it posted in their account.

Clearly, there's a time delay between Noon and when the dividends are paid - hopefully it can be reduced in the future but, for now, that is the only way to make sure you've got your dividends.

[twentyseventy]

Period 4, Day 1 Report - March 1, 2014

Balance Post Divs: BTC 459.46881553

Total Units: 3517

NAV/U: BTC 0.13064225