Savings Account, 2.75% weekly (CLOSED)

[notme]

BTCST is shutting down, this offer is now closed.

Since BTCST (https://bitcointalk.org/index.php?topic=50822.0) now allows pass throughs and my Bitcoinica margin can no longer be relied upon to cover losses, I am going to restructure this program as a BTCST pass through and handle my other ventures from personal funds.  I will maintain the 25% reserves, but these will be the only funds returned in the event of a BTCST default.  The interest rate on deposited funds will be 2.75% weekly.  All other terms will remain the same (48 hour maximum turnaround for withdrawals, 20 BTC minimum, same reserve address and google docs spreadsheet).  As before, deposits will be compounded weekly.  PM a repayment address to get started.

At this time, I am willing to accept up to 1000 BTC.

Original OP:

I lend to private borrowers who use the bitcoins to assist in bringing new dollars into the market (they sell the bitcoins for cash, then rebuy).  I am not at liberty to disclose the identity of these borrowers under the terms of my agreements.  I am looking to expand my lending activities by offering an opportunity similar to a savings account.

The way it works is you PM me an interest/repayment address, and I will send you a deposit address.  Bitcoins deposited will earn 3% a week.  I will maintain a google doc spreadsheet[1] with each deposit address's balance, and I will send all reserve funds to the address 12zyCSx4ijK9UZWwfQQSWBZ5mgHoGyoiEH [2].  In this way, you can see all deposits are held in 25% reserve.

Interest will be earned by me lending out 75%.  If one of my large borrowers goes AWOL, losses will be limited, and I will only request funds I can cover if necessary.  I am currently equipped to handle up to 0 BTC.  There is a 20 BTC minimum to prevent me from dealing with tons of small accounts.  Interest will be added to the reserves every Monday.

I reserve the right return your funds and terminate the agreement at any time.  Additionally, I agree to process all withdrawals within 48 hours unless I notify otherwise in this thread.  If I notify of a withdrawal outage (travel, etc), I will do so at least 24 hours in advance, and will process all pending withdrawal requests at the end of the 24 hour notice.  PM me if you'd like to get started.

1. https://docs.google.com/spreadsheet/ccc?key=0Are8b2rghazXdGtRSDlRR2kwRndYTU5vMzV4TXFFWFE
2. http://blockexplorer.com/address/12zyCSx4ijK9UZWwfQQSWBZ5mgHoGyoiEH / http://www.blockchain.info/address/12zyCSx4ijK9UZWwfQQSWBZ5mgHoGyoiEH

[1713585463]

1713585463

[nelisky]

interesting... Withdrawals are available anytime with the 48h wait? In the event of a "bank run" how long would you take to recoup the invested 25% of the total?

Also, are you equipped to handle 100 btc total or per lender?

[notme]

interesting... Withdrawals are available anytime with the 48h wait? In the event of a "bank run" how long would you take to recoup the invested 25% of the total?

Also, are you equipped to handle 100 btc total or per lender?

100 BTC total at this time, but if you want to be the first lender you can grab it all .

I intend to always have enough BTC available within the 48 hour withdrawal limit from non-lending sources to cover the 25% lent out.
These sources include a small mining operation and a BTC margin balance on Bitcoinica.  I will never take out enough leverage to get liquidated, and I will have a stop loss in place to ensure I maintain enough to cover the 25%.  I also have some GLBSE holdings I can liquidate if necessary.

Withdrawals will be sent within 48 hours.  I expect I will often be able to provide them quicker.

[nelisky]

Ok. I see you are not registered on bitcoin-otc. Do you have pointers to deals you have already done with other members of this forum that vouch for your honesty?

[notme]

Ok. I see you are not registered on bitcoin-otc. Do you have pointers to deals you have already done with other members of this forum that vouch for your honesty?

I should have figured I'd run into this.  To be honest, I can't really ease your mind there.  I could tell you that I'm http://bitcoin-otc.com/viewratingdetail.php?nick=yrral86 but that I've lost my private key due to a hard drive crash, but obviously I can't prove it.  I haven't been on otc for quite a while.  I've come close to making a few purchases on the forums, but none have worked out yet.  Besides, those wouldn't really help you either.  I can't point to any sales I've completed.  If you can think of another way I can prove I'm trustworthy, let me know.

Edit:
I've made a few purchases from bitmunchies.com.  I don't know if he still has the records, but he may be able to vouch for my email address (larry@yrral.net), and I can email you from it to prove it's mine.

[notme]

My email is also in the yrral86 key for otc:
http://pool.sks-keyservers.net:11371/pks/lookup?op=vindex&search=0x2F9DDCF4FADE9455C92342B76640BDC0527895FB

[notme]

100 BTC deposited to address 18zZuiUcFmTT8Ep2J3oMdJBXh7VBzArZrx will be credited to 1965oKTgRPi1DancHcspsxM9MFY9TLqDN1

This will fill all available space for now.

[ineededausername]

notme: If people lend 100 BTC to you, and you keep 75 in reserve and 25 in your account with <censored>, then would it not be equivalent to offering a 4% weekly interest rate for 25 BTC?  Why don't you just do that, and not hold the other 75?

[notme]

Mathematically, you are correct.  Psychologically, people are more comfortable when they can see 75% of their deposit at any time.  Also, I was hoping to allow more people to participate, but someone grabbed up all my space already  .

[ineededausername]

Mathematically, you are correct.  Psychologically, people are more comfortable when they can see 75% of their deposit at any time.  Also, I was hoping to allow more people to participate, but someone grabbed up all my space already  .

Heh, that's interesting... never thought of lending from that point of view before.

[Meni Rosenfeld]

Mathematically, you are correct.  Psychologically, people are more comfortable when they can see 75% of their deposit at any time.  Also, I was hoping to allow more people to participate, but someone grabbed up all my space already  .

Yes, when there are multiple lenders, a reserve is crucial for being able to allow withdrawals in a timely manner. I'm tempted to model this as a Poisson process, but the independence assumption is too strong for such analysis to be useful.

[PatrickHarnett]

Mathematically, you are correct.  Psychologically, people are more comfortable when they can see 75% of their deposit at any time.  Also, I was hoping to allow more people to participate, but someone grabbed up all my space already  .

Yes, when there are multiple lenders, a reserve is crucial for being able to allow withdrawals in a timely manner. I'm tempted to model this as a Poisson process, but the independence assumption is too strong for such analysis to be useful.

Hi Meni - the assumption of independence caused a lot of the bank VaR models to implode because the risks they were guarding against were strongly correlated.  We've already seen events this month on bitcoin that have resulted on runs on funds.  For something new like this, being careful and cautious is a good thing.

[notme]

Availability updated.  Thank you to existing lenders.  PM me to climb aboard, but the minimum has been raised to 20 BTC.

[notme]

Terms adjusted after discussing with all current lenders.  Reserves are lowered to 25% and interest is increased to 3%.  There is no additional availability at this time.

[HorseRider]

I don't believe in this. it's a scam. You can borrow at a much lower interest rate from Zhoutong.

[notme]

I don't believe in this. it's a scam. You can borrow at a much lower interest rate from Zhoutong.

How can I borrow from Zhoutong and withdrawal?  I can only borrow from him to trade.

[Meni Rosenfeld]

I don't believe in this. it's a scam. You can borrow at a much lower interest rate from Zhoutong.

If you take a look at the lending subforum you'll see people lending and borrowing at all sorts of interest rates.

And, as notme says, borrowing in Bitcoinica is only against collateral, and only for trading.

[notme]

Availability updated.  Existing lenders have until Monday, April 9th to increase their deposits.  If there is any availability after that, I will accept new lenders.

[tgmarks]

Very interested and want to follow.

[notme]

Filled up for now.  Thanks!

[Philj]

Any update for May?

[notme]

My grandma passed away and I'm out of town.  I can still process withdrawal requests, but it will be at least a few days before I can check out everything and see how much availability I have.  Thank you for your patience.

[notme]

Terms restructured, see OP.

[drlatino999]

Terms restructured, see OP.

So you're able to support an additional 980BTC deposit?

[notme]

Terms restructured, see OP.

So you're able to support an additional 980BTC deposit?

Yes, I will keep the first post updated with current availability.

[chunglam]

200 BTC sent: https://blockchain.info/address/1E7BAMmMELjZn61SNYChvwvex89JyBsQPY
My repayment address: 13k7dPjMdzJpSY558ZdfvchEsCmpYDqs8R
Thanks

[drlatino999]

Sent 50BTC as discussed at 16:03 CST.

[notme]

Spreadsheet has been updated to reflect all deposits to date.  700 BTC of availability remaining.

[zaj]

i have 48 bitcoins to lend

[notme]

Bumped Availability to 750 BTC.

[drlatino999]

Just wondering, is the maximum you are willing to accept based on how high you can maintain the 25% holding?

[notme]

Just wondering, is the maximum you are willing to accept based on how high you can maintain the 25% holding?

Nah, I can always take the 25% from the deposits and only pass on the 75%.  Initially, it was how much it would take to get me to the 2000 BTC level to bump up my interest to the next level.  I've been adjusting it up and down as I get deposits and hand out withdrawals, but now it's really just arbitrary since I've come up with some more personal funds to deposit.  Going forward, I'll try to keep availability at a level I'm comfortable with covering the interest for a couple days.  I like to keep my deposits/withdrawals with BTCST to once per day since they have to be approved manually and pirateat40 is busy enough as it is.

[ciuciu]

100BTC deposit sent.
http://blockchain.info/address/147q8MTNX3GasUbberGuvqGHdjMtAZPwZy

Thank you.

[notme]

Bump

[notme]

I am requesting a 1 week, 1 day loan of 120 BTC.  I will repay 130 BTC (8.333% interest) within 192 hours from receipt of the bitcoins.  The bitcoins will be invested with BTCST and there will be no insurance/reserves in case of BTCST defaulting.  I have had several large withdrawals lately and this loan will boost my total balance back up to the 7% tier.  The loan will be accepted from the first person to PM me a repayment address.  I will respond with a deposit address for you to send the coins.

[notme]

I am requesting a 1 week, 1 day loan of 120 BTC.  I will repay 130 BTC (8.333% interest) within 192 hours from receipt of the bitcoins.  The bitcoins will be invested with BTCST and there will be no insurance/reserves in case of BTCST defaulting.  I have had several large withdrawals lately and this loan will boost my total balance back up to the 7% tier.  The loan will be accepted from the first person to PM me a repayment address.  I will respond with a deposit address for you to send the coins.

Filled.

[chunglam]

Any change to the rate? Since BST will lower saving account rate on 1 AUG.

[notme]

Any change to the rate? Since BST will lower saving account rate on 1 AUG.

I will likely have to adjust unless I can somehow come up with a few thousand more coins.  Give me some time to look things over.

[notme]

Unless I have already made arrangements with you all accounts will be reduced to 2.75% interest beginning August 1st, 2012.  This is due to the reduction in interest offered by BTCST.

[notme]

This offer is now closed due to BTCST shutting down.  All remaining deposits have been paid out from my personal funds while I await pirate's unwinding.  Thanks again to everyone who participated.

Final Stats:
Total Deposits Made: 1938.28088353 BTC
Total Paid Out: 3603.322 BTC
Percentage of Deposits Paid Out: 185.9%