Later today I will try to explain again, this time week-by-week, how your initial capital in the "insurance fund" got replaced by money from the cycling auctions, and how it happened that you are not holding there any risk anymore... So stay tuned.
As promised, here is how it works, assuming the worst case scenario, in which all the bonds are sold at 1.00 BTC.
For simplification and better understanding I will use 1000, instead of 3000, for weekly deposits / new bonds.
I hope you don't need a prove that this schema works just as well with other amounts? I'm asking this because your stupidity has already surprised me at least once, so I never know...
Anyway, here is how it works:
Week no | Depositor of 1000 BTC | BTC in The Fund | BTC in BS&T | Withdraw from BS&T for 1000 BTC deposited 4 weeks ago
=============================================================================================================================
0 | PPT shareholders | 0 BTC | 1000 BTC | -
1 | Buyers of PPT.A | 1000 BTC | 1000 BTC | -
2 | Buyers of PPT.B | 1000 BTC | 2000 BTC | -
3 | Buyers of PPT.C | 1000 BTC | 3000 BTC | -
4 | Buyers of PPT.D | 1280 BTC | 4000 BTC | 280 BTC to the Fund, 1030 BTC to PPT shareholders
5 | Buyers of PPT.E | 1280 BTC | 4000 BTC | 1280 BTC to buy back PPT.A, 30 BTC to PPT shareholders
6 | Buyers of PPT.A | 1280 BTC | 4000 BTC | 1280 BTC to buy back PPT.B, 30 BTC to PPT shareholders
7 | Buyers of PPT.B | 1280 BTC | 4000 BTC | 1280 BTC to buy back PPT.C, 30 BTC to PPT shareholders
8 | Buyers of PPT.C | 1280 BTC | 4000 BTC | 1280 BTC to buy back PPT.D, 30 BTC to PPT shareholders
9 | Buyers of PPT.D | 1280 BTC | 4000 BTC | 1280 BTC to buy back PPT.E, 30 BTC to PPT shareholders
10 | Buyers of PPT.E | 1280 BTC | 4000 BTC | 1280 BTC to buy back PPT.A, 30 BTC to PPT shareholders
11 | Buyers of PPT.A | 1280 BTC | 4000 BTC | 1280 BTC to buy back PPT.B, 30 BTC to PPT shareholders
12 | Buyers of PPT.B | 1280 BTC | 4000 BTC | 1280 BTC to buy back PPT.C, 30 BTC to PPT shareholders
13 | Buyers of PPT.C | 1280 BTC | 4000 BTC | 1280 BTC to buy back PPT.D, 30 BTC to PPT shareholders
14 | Buyers of PPT.D | 1280 BTC | 4000 BTC | 1280 BTC to buy back PPT.E, 30 BTC to PPT shareholders
15 | Buyers of PPT.E | 1280 BTC | 4000 BTC | 1280 BTC to buy back PPT.A, 30 BTC to PPT shareholders
... and so on ...
As you can see, at week 4 the initial investment was already returned to the PPT shareholders while the fund required to handle all the insurance is still there.
So the first 1000 BTC was exposed to the risk only for the first 4 weeks. Later you simply withdraw the initial capital because the bonds self-insure themselves.