So if I understand you pay 1 BTC for 1TH of hashing power (almost 1 S5) it mines with no power or maintenance taken out,
Yes.
once it earns 1btc +.7 statoshi a second you get paid and Bitmain keeps hashing on.
Almost right.
The 0.7stoshi/seconds/BTC is based on the unpaid principle, which is declining during the whole process of the lifecycle of the contract.
So if the S5 becomes unprofitable it will turn off but keep paying out like it was still mining for 10 more days and that's that?
Right, but only the red part. You are mentioning the clause to address the risks.
Contract Suspension
If after 120 days, a PACMiC has still not recovered the initial capital for its user, and is not mining enough revenue to pay for its own electricity cost (fixed at 0.098 USD per kWh, calculated using an ideal AntMiner S5 hashing at 100% uptime per PPS payout), whether because of difficulty increase or BTC price decrease, the PACMiC will continue paying out for ten days as though it were running, even if the machine is turned off. If these conditions persist for ten continuous days, the contract will be considered temporarily suspended. During the suspension period, mining revenues and profit payments will also be temporarily stopped. If after the suspension period, difficulty has dropped or bitcoin price has risen, making mining possible again, the contract will be reinstated and pick up where it left off.
You can see that IF the situation changes and the S5 is profitable to run again, the PACMiC will pick up. So there is alway risk as well as the hope.
