[GLBSE] BDK.BND (1%/week) *IN DEFAULT*

[Kluge]

10/2/12 Update: READ THROUGH Page 6 & beyond (if your settings are set to show 20 responses/page). I am currently in default on BDK.BND and have locked debt @ bondFV*1.01 -- *BUT* keep in mind I am not buying all the bonds back in one lump, but paying out irregular, unannounced dividends. If you are unfamiliar with what I'm doing, I strongly advise against trading these bonds. The current GLBSE contract is VOID. There is no longer a .101BTC/bond buyback guarantee on BDK.BND.

Current Bond FV @ "Lock In" rate (this is the amount I claim I am liable for assuming interest does not accumulate after the date I announced default): 0.092139BTC/bond
Current Bond FV @ "Compounded" rate (this is the amount I claim I am liable for assuming interest DOES accumulate after the date I announced default): 0.093139BTC/bond



Pretty cut-and-dry. I'm guessing if you're interested, you've invested in similar bonds and don't need me to re-hash the inner-workings. BDK's financials & operating activity: https://docs.google.com/spreadsheet/pub?key=0Ao892S4MOoDZdGZSbjJVd1ZTbFVLZE5aRE95bE91NVE&gid=18

GLBSE link: https://glbse.com/asset/view/BDK.BND

Contract
BDK.BND pays 1% of face value every week (Monday). Percentage will remain at 1%/week until the bond is bought back by the bond-issuer ("Ben Malec"). Bonds will be issued @ .1 BTC each. Thus, each bond will pay .001BTC every week. There is no limit on how many bonds may be issued nor when they may be issued. Bonds can be issued and sold without warning by the bond-issuer at any price he wills. Bonds cannot be sold back to the bond-holder except in case of a buyback. BDK.Bond does not have a set date of maturity.

"Buyback" -- The bond-issuer may buy back all bonds at a price of .101BTC/share at any time he wills, without warning. In this case, the bond-issuer will use GLBSE's forced buyback feature to pay .101BTC/share.

"Contract Changes" -- The bond-issuer is not permitted to change this contract at any time under any circumstance. To "change the contract," a buyback must be placed and a new bond asset listed on GLBSE.


--END CONTRACT--


Any questions?

[1713269999]

1713269999

[Nefario]

Hey Kludge,
just to let you know there is a 3 day waiting period to having an IPO launch since the update (you can see on the asset creation page, it won't let you go ahead unless you pick a date 3 days into the future).

[Kluge]

Hey Kludge,
just to let you know there is a 3 day waiting period to having an IPO launch since the update (you can see on the asset creation page, it won't let you go ahead unless you pick a date 3 days into the future).

Saw it. It's still May 6th here. 

[Kluge]

Oh. I should have noted that this is phasing out my old manual CD system.

Once we're beyond the IPO date, I'll offer to issue bonds to CD-holders in an amount equal to what their CD is worth @ date of maturity. CD renewals are no longer permitted. If no renewal (as a bond) on a CD @ date of maturity, CD will pay principal + interest like normal.

[Sukrim]

As long as mining bonds return more than 1% per week (they currently do and will for the forseeable future - until difficulty grows to ~2.5 million - continue to do so) you can get profits and after that just buy back your bonds or invest elsewhere.

Nice idea!

[Kluge]

Contract changed slightly. I'd place a bid order, not an ask order when doing a buyback.  Thanks for pointing it out, Meni.

[Kluge]

There's a forced buyback feature now on GLBSE, which makes the old "place a big bid order" method obsolete. The contract's been updated to reflect this. My understanding is that I have to set an arbitrary date, but that it's meaningless because I don't necessarily have to buy back on that date. My understanding is also that Nef will enforce the contract insofar as the buyback clause specifies.

[Kluge]

Fwiw, I have no intention of issuing bonds for at least a few weeks. I currently have more BTC than I know what to do with (which is exceedingly rare). 105 shares will be transferred to someone who holds a CD which expires today, and that's it for now. Shares will likely only be issued for those CD-holders who choose to "renew" in the form of BDK.BND shares. Some may not renew, and one person so far has expressed interest in receiving the equiv. of BDK stock instead of BDK.BND. You can check the dates of maturity for a guess of when bonds may be issued by checking the spreadsheet @ https://docs.google.com/spreadsheet/pub?key=0Ao892S4MOoDZdGZSbjJVd1ZTbFVLZE5aRE95bE91NVE&gid=3

Just wanted everyone to have a heads-up since I noticed a fairly large bidwall and know those people are tying up their funds. Person receiving bonds today might cash out for some amount, but I wouldn't know what he'll sell at, and he'll only hold the equiv. of 10.5BTC-worth @ face value. Kind of miss GLBSE allowing "semi-unbacked" orders where you could bid on multiple assets but only have enough funds to fulfill a fraction of those orders.

Oh - and fwiw, I asked GLBSE to launch the asset ASAP. At latest, it'll launch in ~6h.


Cheers,

Ben


ETA: I take it back. I'll be issuing bonds for as many bids as exist @ .1 tonight. Found a good home for 'em.

[Kluge]

Going live in a few minutes. Will fill all orders @ .1 (and above, I guess) up to 500BTC-worth. First dividend payment will be made on May 14th and every Monday thereafter.


Cheers,

Ben


ETA: Any... minute... now........
ETA2:Minor technical difficulty while the forced buyback option's implemented. Should be good "soon."

[Kluge]

Alright. All's well thanks to a lot of shouting and screen-pounding from Nef, who I suspect lost a day or two from his life due to stress of figuring out the problem. Thanks, Nef.

Shares have been transferred to CD-holders I owed, and I'll be issuing a bunch of shares on the market within an hour after I finish up some other pending business. Cheers!

[Kluge]

Now 3039 bonds in the wild. (3039/10)/100 = 3.039BTC due on Monday.


Cheers!

[der_meister]

Just got my first assets on glbse (happy)

[Kluge]

I have put up 1.5k ask orders @ .1035, 39 bid orders @ .097. I'll watch the trades in #bitcoin-assets to see if the bid wall goes down and put a larger one up if so. I do not intend to allow BDK.BND to fluctuate much like some other bonds.

Trades when I have an interest in making a particular transaction (for instance, if I need BTC to make a loan or something like that, or if I want to reduce what I'm paying to bondholders per month), the bid/ask will be much closer to .1

Cheers!

[Kluge]

I have put up 1.5k ask orders @ .1035, 39 bid orders @ .097. I'll watch the trades in #bitcoin-assets to see if the bid wall goes down and put a larger one up if so. I do not intend to allow BDK.BND to fluctuate much like some other bonds.

Trades when I have an interest in making a particular transaction (for instance, if I need BTC to make a loan or something like that, or if I want to reduce what I'm paying to bondholders per month), the bid/ask will be much closer to .1

Cheers!

You might find that it is hard to control the price. I attempted to keep the price down on TyGrr-Bank but only ended up with having more debt. More debt than I needed.

I always can almost always use more OPM 

Speaking of which, I have use of ~1k BTC tonight. Ask order will be up until fulfilled or I go to sleep


ETA: Order removed. Currently 3102 bonds issued.

[Kluge]

A large bond-drive is now in effect. For a few days, I plan to have an ask order up @ .1 in a relatively huge amount. There is extremely exciting stuff going into motion everyone will benefit from (not restricted to those involved with BDK). That said, BDK pre-IPO shares are still available, too!

[Kluge]

Issued: 3439 bonds (343.9BTC FV)
Interest Payment: (343.9*.01)=3.439BTC

Next Payment Date: May 21st

[Kluge]

The askwall @ .1 has been taken down.

Cheers!

[mcorlett]

Would a default by BS&T affect this offering?

[Kluge]

Would a default by BS&T affect this offering?

No. As it happens, in 4 days, I'm entirely out of Pirate.

[BinaryMage]

The askwall @ .1 has been taken down.

Cheers!

And another up now (currently 997 shares) - you?