[GLBSE] FOO.PPPPT - Perpetual Pure Pirate Pass-Through Bonds - 7% weekly

[waltmarkers]

If you're going to continually create shares, would you please consider doing something to keep the market from being flooded? Like not sell more shares if there are bonds on the market that day under your scheduled ask? Alternatively, offer a buyback feature to your notes?

There has been very little depth of market on the ask side for a few days. That lack of depth is preventing me from buying more shares.

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[bitfoo]

If you're going to continually create shares, would you please consider doing something to keep the market from being flooded? Like not sell more shares if there are bonds on the market that day under your scheduled ask?

This happens naturally - like right now, there are some bonds for sale below my price, which means my bonds won't get sold, and so no new bonds will get issued.

There has been very little depth of market on the ask side for a few days. That lack of depth is preventing me from buying more shares.

I assume you mean there's no depth on the bid side. I understand the concern. This is a problem that plagues many assets on GLBSE, not just this one (see the supposed GIGAMINING "crash" incident). There's just not enough incentive for people to leave BTC on the bid side of any GLBSE asset. It's hard to compete with 7% a week.

Alternatively, offer a buyback feature to your notes?

This is hard for me to do until pirate offers an automated withdraw feature. Currently I'd have to email him for every withdraw request, and I'm not sure he'd appreciate a deluge of requests on behalf of bondholders. Deposits are much more streamlined ATM.

I could possibly do a batched withdraw every week. I'll have to think about the procedure a little bit. In the mean time, perhaps it's easiest if you just place an ask at 1.0 BTC. You can even advertise it here for a quicker sale.

[bitfoo]

Dividends went out a while ago: 3928 outstanding bonds / 274.96 BTC = 0.07.

About buybacks: I'd be willing to do this once a week, but the problem I see is this (from the contract):

"The value of the weekly coupon will be exactly x% of 1 BTC, where x is the interest rate that the total value of bonds issued receives from the underlying investment."

If I start buying back bonds, the number of bonds issued is no longer equal to the amount of BTC I have in BS&T. If interest rate tiers change, I might end up being liable to pay out more interest than I receive. It probably should have been worded as "number of bonds outstanding". Any suggestions?

[brendio]

Dividends went out a while ago: 3928 outstanding bonds / 274.96 BTC = 0.07.

About buybacks: I'd be willing to do this once a week, but the problem I see is this (from the contract):

"The value of the weekly coupon will be exactly x% of 1 BTC, where x is the interest rate that the total value of bonds issued receives from the underlying investment."

If I start buying back bonds, the number of bonds issued is no longer equal to the amount of BTC I have in BS&T. If interest rate tiers change, I might end up being liable to pay out more interest than I receive. It probably should have been worded as "number of bonds outstanding". Any suggestions?

When you buy back, withdraw an equivalent amount from BS&T (if you can't resell them in a short period of time).

[Gladamas]

I think the title of this thread should be "[GLBSE] FOO.PPPPT - Perpetual Pure Pirate Pass-Through Bonds - 0.07 BTC weekly" rather than 6.67%, because that percentage is variable based on the share price.

[bitfoo]

When you buy back, withdraw an equivalent amount from BS&T (if you can't resell them in a short period of time).

Of course, I would withdraw the amount. But I can't destroy bonds on GLBSE, so the "number of bonds issued" still stays the same. Extreme example: say I have 5000 bonds issued but only 2000 left in BS&T due to buybacks. Then BS&T changes the interest rate tiers to 4000 BTC for 7%, 5.6% for everything below. Due to the wording of my contract, I'm still liable to pay an interest rate of 7%. Obviously I'd like to avoid having to get into a situation where I'm forced to violate the contract.

I'd need to change the contract to read "number of bonds outstanding" instead of "number of bonds issued" - that would fix this problem.

[brendio]

When you buy back, withdraw an equivalent amount from BS&T (if you can't resell them in a short period of time).

Of course, I would withdraw the amount. But I can't destroy bonds on GLBSE, so the "number of bonds issued" still stays the same. Extreme example: say I have 5000 bonds issued but only 2000 left in BS&T due to buybacks. Then BS&T changes the interest rate tiers to 4000 BTC for 7%, 5.6% for everything below. Due to the wording of my contract, I'm still liable to pay an interest rate of 7%. Obviously I'd like to avoid having to get into a situation where I'm forced to violate the contract.

I'd need to change the contract to read "number of bonds outstanding" instead of "number of bonds issued" - that would fix this problem.

GLBSE documentation leaves a little to be desired. After you have bought back, you can use the "recall security" function to "cancel" any number of bonds in the issuer's account.

[bitfoo]

GLBSE documentation leaves a little to be desired. After you have bought back, you can use the "recall security" function to "cancel" any number of bonds in the issuer's account.

Thanks, that's perfect! I always thought "recall security" was when you wanted to buy back all securities from the market.

Bond buyback procedure:

Transfer your bonds at any time to the asset account on GLBSE (account name = bitfoo:FOO.PPPPT). You do not need to notify me when transferring them. The cutoff time for this is Monday 02:00 AM GLBSETime (EDT). After the Monday dividend payment, I will e-mail pirate for a withdrawal of all accumulated buyback requests. Once the funds are returned from BS&T, each bond will be paid the face value of 1 BTC + 1 week's interest. A fixed fee of 1 BTC will be deducted per buy-back transaction. If you send me bonds more than once in the same week, it still counts as just one transaction.

I cannot let the account balance fall too low, so I reserve the right to suspend the buy-back option at any time. Please check the OP before sending me any bonds. If more buy-backs are requested in a particular week than I can honor, requests will be processed on a first-come, first-served basis, and the remaining bonds will be returned.

I have updated the OP with this info. Let me know if you have any questions or concerns.

[bitfoo]

I think the title of this thread should be "[GLBSE] FOO.PPPPT - Perpetual Pure Pirate Pass-Through Bonds - 0.07 BTC weekly" rather than 6.67%, because that percentage is variable based on the share price.

I'm more inclined to setting this back to 7%, because the face value of each bond is still 1 BTC, regardless of the premium paid for each share. At least that's how Goat (and maybe brendio) advertise their bonds. This document from brendio has some useful information.

[brendio]

GLBSE documentation leaves a little to be desired. After you have bought back, you can use the "recall security" function to "cancel" any number of bonds in the issuer's account.

Thanks, that's perfect! I always thought "recall security" was when you wanted to buy back all securities from the market.

Bond buyback procedure:

Transfer your bonds at any time to the asset account on GLBSE (account name = bitfoo:FOO.PPPPT). You do not need to notify me when transferring them. The cutoff time for this is Monday 02:00 AM GLBSETime (EDT). After the Monday dividend payment, I will e-mail pirate for a withdrawal of all accumulated buyback requests. Once the funds are returned from BS&T, each bond will be paid the face value of 1 BTC + 1 week's interest. A fixed fee of 1 BTC will be deducted per buy-back transaction. If you send me bonds more than once in the same week, it still counts as just one transaction.

I cannot let the account balance fall too low, so I reserve the right to suspend the buy-back option at any time. Please check the OP before sending me any bonds. If more buy-backs are requested in a particular week than I can honor, requests will be processed on a first-come, first-served basis, and the remaining bonds will be returned.

I have updated the OP with this info. Let me know if you have any questions or concerns.

I also thought "recall security" sounded like the buy back function. I think it should be renamed to something more descriptive.

Also, when someone transfers you an asset on GLBSE, the portfolio page does not list who it came from. I'm not sure if you can access the info from the api or the downloaded CSVs, but until then it might be an idea to get people to inform you after they've transferred bonds back.

[bitfoo]

Also, when someone transfers you an asset on GLBSE, the portfolio page does not list who it came from. I'm not sure if you can access the info from the api or the downloaded CSVs, but until then it might be an idea to get people to inform you after they've transferred bonds back.

I did verify that the account CSV file shows who sent me how many assets and exactly when they were sent. Relying on user notifications isn't particularly secure anyway. Also, I like streamlining my operations as much as possible.

[brendio]

Also, when someone transfers you an asset on GLBSE, the portfolio page does not list who it came from. I'm not sure if you can access the info from the api or the downloaded CSVs, but until then it might be an idea to get people to inform you after they've transferred bonds back.

I did verify that the account CSV file shows who sent me how many assets and exactly when they were sent. Relying on user notifications isn't particularly secure anyway. Also, I like streamlining my operations as much as possible.

Good to know. I learn something too!

[bitfoo]

Esteemed PPPPT bond-holders:

I'll be travelling for the next week and a half. Coupons will still be paid out, of course, but will probably not be as quick as it has been in the past. I still expect to pay them within the promised 24-hour time-frame. In other words, "DON'T PANIC" (in large friendly letters). Buy-backs can still be processed (cut-off time for this is in less than 12 hours). Bond sales might be sporadic depending on availability.

[Gladamas]

Esteemed PPPPT bond-holders:

I'll be travelling for the next week and a half. Coupons will still be paid out, of course, but will probably not be as quick as it has been in the past. I still expect to pay them within the promised 24-hour time-frame. In other words, "DON'T PANIC" (in large friendly letters). Buy-backs can still be processed (cut-off time for this is in less than 12 hours). Bond sales might be sporadic depending on availability.

Have a nice trip, and remember to bring a towel! (Towels are VERY useful...)

[waltmarkers]

Whoever bought at 1.15 sure triggered a bunch of wishful thinking sell orders.

[brendio]

Whoever bought at 1.15 sure triggered a bunch of wishful thinking sell orders.

Why not. Sell orders are free, unlike buy orders, which involve opportunity cost.

[nimda]

I always keep at least part of my holdings in every bond in a sell order. Since there's no fees for placing an unfilled order on the book, I make money when they're fulfilled. E.g. Tygrr-Bond-B I buy @ 0.99 and sell @1.02 weekly, doing better than its interest.

Edit: just realized I got in on that! Sold FOO.PPPPT for 1.14999

[btharper]

Looks like the payment from pirate hit the interest address. I expect bitfoo will be moving funds and paying dividends in the morning.

@Bitfoo
Since it matters this time, will you still be offering any bond cycles at 1.05 still? Your original post puts the rates after Tuesday at 2am EST at 1.06, but that didn't take into account pirate having to delay payment. Thanks either way.

[bitfoo]

Looks like the payment from pirate hit the interest address. I expect bitfoo will be moving funds and paying dividends in the morning.

As I said earlier, I was flying at the time, so my time-zones are all out-of-whack right now. Dividends went out around 12 hours ago. Next week may also be slightly delayed, but it'll get back to normal after that.

@Bitfoo
Since it matters this time, will you still be offering any bond cycles at 1.05 still? Your original post puts the rates after Tuesday at 2am EST at 1.06, but that didn't take into account pirate having to delay payment. Thanks either way.

I did clear out all bids at 1.05 after dividend payment. But in general, the pricing will be fixed based on the schedule and not based on pirate's interest payment time. That's because his interest payments are calculated based on the average balance during the week from Monday 12 midnight CDT till the next.

[btharper]

Looks like the payment from pirate hit the interest address. I expect bitfoo will be moving funds and paying dividends in the morning.

As I said earlier, I was flying at the time, so my time-zones are all out-of-whack right now. Dividends went out around 12 hours ago. Next week may also be slightly delayed, but it'll get back to normal after that.

I must have missed that, be it flying or sleeping though, I can't give you any flack for having a life to deal with.

@Bitfoo
Since it matters this time, will you still be offering any bond cycles at 1.05 still? Your original post puts the rates after Tuesday at 2am EST at 1.06, but that didn't take into account pirate having to delay payment. Thanks either way.

I did clear out all bids at 1.05 after dividend payment. But in general, the pricing will be fixed based on the schedule and not based on pirate's interest payment time. That's because his interest payments are calculated based on the average balance during the week from Monday 12 midnight CDT till the next.

Thanks for grabbing my bid along with everyone else's. Either rationale made sense, I didn't figure it could hurt to ask at least