Topic: [ANN] BTCJam - Peer to Peer Bitcoin Lending - page 43. (Read 204975 times)

I posted this question to your support email, but I figure I'll place it here as well so that others will know, if they are searching. 

The terms state that providing additional personal information outside the listing is 'not recommended' due to potential harm that can occur.  Is this outright banned?   I'd like to add a telephone number for any investors to be able to contact me at if they have questions about how their loan is being invested.


Also, as an aside, I notice that the last loan I secured did not send me back any dividends.  Are there plans to track dividends and send them to the original share owner once the loan is fully paid and the shares are returned?   

I ask because one problem with securing loans while the value of BTC is fluctuating is that some of the securities will have a value that fluctuates along with the price of bitcoin.  I avoided securing my last loan for this reason --  there's no way to sell when the price drops with the shares tied up as collateral.   If I were to receive dividends for my locked down shares, then I could collateralize with those securities which I believe hold long term value and pay dividends frequently without worrying about the loss of divididends for the entire time period.  As an example, I could provide Asicminer as collateral, which pay once or twice a week, rather than S.Dice, which pays out on a  monthly basis.

It would help verify the payments if we could see a ledger of all the payments that were made on a particular loan (as well as the interest rate calced at each payment and the portion applicable to principal).  Most loan sites provide that info (from mortgage companies to smaller consumer loans).  Otherwise, I can't trust the numbers at all at BTCJam since my spreadsheet reflects a large calc error.

I verified it and my math is right, unfortunately.   You have to use the "Extra Payments" section, which is what my spreadsheet also showed.  If payments are made earlier (as my amortization spreadsheet attached above shows), it decreases the principal that was available for interest accumulation so the 2% interest (in my case), has less to be calced against, resulting in a decreased total payment.  BTCJam does not account for this and always assumes payments are made exactly on the date they are owned, which is incorrect (per the link you sent).  This does not decrease the amount of the fixed payments, but usually decreases the number of fixed payments (and may make the last payment smaller as well).

Please look at the spreadsheet I emailed you.

The math is right. You can verify it at those websites (not owned by BTCJam).

There are many online calculators, this one, for example:
http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx

They ask for annual percent rate (APR), to convert to monthly just multiply by 12 (and set the payment cycle to one of the monthly options on BTCJam):
http://www.wikicfo.com/(S(ad5nas45u0zr13fcts5u0y55))/Print.aspx?Page=Annual%20Percent%20Rate&AspxAutoDetectCookieSupport=1

Early payments are not discounted. Fixed payment loans usually don't discount when payments are made early.

The borrowers that don't pay will not remain reputable, people with late loans can't even create new listings.

I really understand and share your concerns, every constructive suggestion and advice will be considered.

I just pre-paid a bunch of my future payments on my loan.  Although the future payment calc is now wrong taking into account these early payments (and wish there would be more details available on the site as I have no idea what the principal balance is as of today), some people are making an effort.  My issue is I should owe 2.4 BTC by my calcs, but BTCJam shows I owe about 5 (which a 2.6 BTC at the current exchange rate for a loan that started off as $300 USD in total is a bit of an extreme difference).  I am getting no response from the site anymore (even after sending a spreadsheet that shows where BTCJam is broken, so I am lead to believe all interest rate calcs are wrong.)

It was a shame - I can see a use for BTCJam, but the math is all wrong (and it makes the whole issue worse right now).

At the moment 4 of the loans I supported are overdue out of the 6 I funded. The other 2's first payments are not due yet. But at the moment it looks like no-one on BTCJam is paying back their loans at all.

Phil

May I ask what the % of loans are that are overdue? I suspect it will give a very different picture than just % of payments that are overdue.

I'd like to see a detailed history on each loan, including when payments where made and the running total of the principal balance.

-1

Many lenders will fail to consider this. They will simply seek borrowers that seem honorable and those borrowers that are honorable or were honorable in the past will simply have no way whatsoever to repay their loans because they cannot earn or borrow enough fiat to repay their loans anymore. This situation would've been fine had BTC remained in the double digits, but at over $200 this will effect every borrower that lacks the ability to mine the coins needed to repay their debt...or borrow the coins from someone else to repay their btcjam loan.

I'm implementing a voting system so the lenders will be able to agree (or not) with a change in loan terms.

We have also published a note trading platform, you can buy your debt back if the investor sells it to you for a price you can negotiate with him.

Yes, I think a warning about price fluctuations is welcome. Will work on that.

The warnings on your website are woefully insufficient. It may not occur to many lenders just how low the chances of being repaid has become with the exchange rate rising so sharply. The exchange rate is $235 as I type this, any predictions on how much further you project the global repayment rate to fall in the next two weeks if this remains the same or continues to rise?

ya that what i was thinking and its all buggy

Good for them. I didn't have the option.

Perhaps one may think that at this all time high the best thing to do is to actually take out a loan and repay after a "probable" price correction.

This 20x increase in price is affecting older loans, our average loan has a very short term.

ps: In addition to secured loans you can also invest in mtgoxusd or mtgoxeur referenced loans.

I just noticed things seemed to be in different spots.  Can someone else run their loan thru an amortization calculator and make sure things were calced correctly (especially if you paid ahead of schedule)?

did i miss something or was there a huge update to the site and no one said anything.  ie. notes got added.

That's a confirmed drop of the global repayment rate of 1.4% in ONLY NINE DAYS

URGENT: PLEASE STOP FUNDING UNSECURED BTCJAM LOANS. YOU WILL ALMOST SURELY LOSE YOUR COINS.

The people that are taking out these loans may or may not be intending to scam, but they cannot repay the loans if they have to convert fiat with the exchange rate going up multiple hundreds of percent.

I may be beating a dead horse, but BTC Jam's interest rate calcs look wrong (and fail to account for early payment of principal).  This is a spreadsheet based on a current loan of mine where I made early payments of principal.  It looks like I only have a little over two payments remaining, but in reality there are five more payments due.  Am I missing something?

Link to spreadsheet is here -> https://docs.google.com/file/d/0B-kNt2wTZXljdlJXbzNaYjJtUFk/edit?usp=sharing