Starfish BCB - Loans and Deposits

[malavita]

Patrick,

1) As a borrower, compounding interest = scary, I'd prefer weekly payments even if they're more work (on both sides).  Identity/credibility is huge and everybody benefit from it: lenders have less defaults, borrowers in the long run can negotiate better loans, everybody wins - as a borrower I'm all in favor of more transparency. 

4) Not sure of the legal implications of it, but if the big lenders on the board would want to designate a trusted member as the repository of contact info, real email addresses, etc., I would provide my info without problems - sort of getting preapproved

5 & 6)  I'm always ready for large (200+) at 10% monthly and I will do daily repayments if that's what I have to do to get them - you set the rules and let me know how you want it done


Just my two cents - cheers!

[PatrickHarnett]

malavita - thanks for your comments.

Weekly payments are not too much extra work, but it would be nice if there was a scheduled payments function in the wallet client.
Identity/Credibility will remain issues for a long time, and that goes to the rates being charged.  If someone wasn't prepared to provide some real info on themselves, then they probably are not a good candidate for a loan (from me at least).

[Cobra]

Re: Cobra loan

I spent quite a while discussing and arranging a loan with Cobra yesterday and we reached agreement to do a three month, 200 coin loan.  We discussed quite a few things and on reflection (along with some recent bitcoin developments) Cobra decided not to take up the loan, and returned the test deposit we had exchanged.  Cobra is not a long-time or senior member, so is still building credibility on the forum, but on the basis of my dealing with him, will probably do some business when the time is right.

Thank you Patrick for the kind words.  I look forward to building credibility in the forum and maybe taking a loan in the future.  I certainly understand why any lender is skeptical to loan a large sum of coins to a new member with limited posts, it almost instantly gets a scammer comment from someone. Many new members that have burned a lender unfortunately ruin it for other new members. I thank Patrick for not stereotyping me right away and just tossing me in the high risk category without any further thought. I was able to prove credit worthiness and verify identity to put his mind at ease.

I was going to buy 6 BFL's and finance 2 of them but started to think of all the negatives revolving that.  The wait will probably be well over 6 weeks. Hopefully you could sell them here but the market is limited unlike a video card. With all the other people buying these and the increased hashing power on the network combined with increasing difficulty, I am going to wait things out a bit.

[PatrickHarnett]

Deposit received at 1955vGExYkVoPYSk9ZiigtuBYQjZw5GKmQ
Repayment will be to address 1GWk6b4KgbdSXnC7hL2ppHbyK35dXqhyuk

The deposit  will compound at 1.5%/week.  Calculation is based on clock time rather than whole weeks or days.  To avoid arguments on time receipt I am logging receipt at 12:01 a.m. my local time.

A related note, I take the privacy of my clients quite seriously.  This was pointed out above regarding the issue around identity and use of information.  For those wishing to build reputation it is normally declared.  The flip side is that there are some transactions that are not notified. 

[der_meister]

I sent 50 btc in deposit. Patrick, pls confirm 

[PatrickHarnett]

I sent 50 btc in deposit. Patrick, pls confirm 

Yes, 50 coins received this morning.  Weekly interest payments will be paid to your notified address.

As some additional disclosure for those interested:
 - Total deposits are currently around 900 coins.  1/3 are paying weekly interest and 2/3 compounding.  Availability will be good until I get to a stage where deposits reach roughly half of the cash I've invested directly.  At that stage I'll simply keep additional reserves on hand.
 - It is public record I have an account with Pirate FS&T (opened 17Dec2011).  Most of my deposits to that account were before I started lending in January and I am not directing deposits to that account as that is not my long term plan.  I am comfortably over the 2000 coin mark there.
 - I do some mining, but I'm not interested in buying extra stuff, mainly because at my house I run out of available circuits and the $20k of stuff I have is enough.
 - And with the trading market largely static, other than a few arbitrage opportunities, I'm not doing much there (i.e. I don't speculate or "hope" for price movements)

[malavita]

Thanks for the disclosure statement.

[BadBitcoin (James Sutton)]

just withdrew 203 btc from my deposit account with Patrick, no problems at all,
+10 rep for this man.

[jarsumarsu]

I'm considering if I deposit some coins for a week, maybe for a one month or perhaps even longer time.
I'm talking about 500 BTC 

Is that possible and what would be the interest rate and or amount? For a week, for a month...?

[PatrickHarnett]

Jarsumaru asked me to record the basic details here.  He intends to deposit 300 coins for around two weeks (so I expect to receive the coins sometime today (23Mar) and repay around 7Apr depending on his requirements.

As for a normal deposit, 1.5% interest rate / week, compounding, on-call.  It will commence 12:01 a.m. local on the day I receive funds and compound until the time it is repaid.

I will edit/confirm when coins are received.
Edit: 9:00 a.m. UTC + 13 - coins received

[jarsumarsu]

Jarsumarsu asked me to record the basic details here.  He intends to deposit 300 coins for around two weeks (so I expect to receive the coins sometime today (23Mar) and repay around 7Apr depending on his requirements.

As for a normal deposit, 1.5% interest rate / week, compounding, on-call.  It will commence 12:01 a.m. local on the day I receive funds and compound until the time it is repaid.

I will edit/confirm when coins are received.

300 BTC sent.

Repayment address is:

1AjKHMB7XdPhBXJ3JGqDg48aFeSrHGy872

Patrick, please confirm

[jarsumarsu]

*snip*
Edit: 9:00 a.m. UTC + 13 - coins received

Here in Finland the time is 10 pm, so good night 

[PatrickHarnett]

ok.  The starfish is going on holiday and changing time-zone (not sure if 4 or five hours - but going to Northern hemisphere).   I'll be less available on-line for the next two weeks, but will still be running the bank while I'm away from home base.  Like I said, I have a life, and this break has been nine months since the last sojourn to Kyoto.

[Red Emerald]

What does BCB stand for? Bitcoin Community Bank?

[PatrickHarnett]

BCB doesn't actually stand for anything, but if you want it to, that's ok.  In my jurisdiction there are laws against using the word "bank" in company names, so I avoided writing that.

Maybe I should change to Bikini Bottom Bank?  Patrick Star is holidaying in Kyoto currently - I have a picture of him next to the Shinkansen, but I'm sure he'll up to other tricks in the next week.

[Kluge]

BCB doesn't actually stand for anything, but if you want it to, that's ok.  In my jurisdiction there are laws against using the word "bank" in company names, so I avoided writing that.

BDK & BCB aren't banks, son los bancos. Huge difference.

We don't offer demand deposit services, we offer services which aren't necessarily guaranteed to be paid when the depositor wants.

"BDK" & "BCB" don't offer loans or issue CDs (and by "CDs," I of course mean personal loans issued to us), we do.


Thanks to laws, consumers win.

[PatrickHarnett]

200 BTC loan to Cobra on the terms we agreed several weeks ago.  i.e. payments are set at 10% of the principal each week for 13 weeks.  That isn't as bad as it might look, because in three months the principal is paid off fully.  An interest only loan would cost more over the term.

[PatrickHarnett]

Updated OP for March activity.

Starfish BCB completed holiday in Japan and had a lot of fun, and also did quite a lot of lending (around 1000 coins) and deposit taking (around 2000 coins), including processing withdrawals (around 500 coins).

As advance warning, I may need to drop the interest paid on deposits in May to 1.25%/week, but trying to avoid that.  Dependent on a project that should be clearer towards the end of the month.

[Philj]

223BTC loss for march. That must sting a bit. You still working any recovery angles on those?

[PatrickHarnett]

223BTC loss for march. That must sting a bit. You still working any recovery angles on those?

A few swear words, but it's ok.  I've caused a bit of shit for one of the people concerned.  But it's history now, and overall coin income is pretty good.  The scale I'm dealing with, while not as big as some other people, is still pretty substantial.  So I know there are some risks involved and potential to lose serious money on some of the loans I have out in the wild.

Also, and this isn't a secret, I have a separate portfolio of deposits/investments that sit outside of the Starfish BCB.  It provides the coverage I need, for instance, to support the deposits that I take, and also helps balance out some of the loan losses.