Topic: Banco De Kluge (BDK) - [On "Vacation" -- PM me if you need anything] (Read 4580 times)

I'll be closing this thread. I will be buying a house soon and need to convert some BTC to USD, and there aren't many loans being asked for on productive ventures. I'd rather go through GLBSE to provide funding for productive projects. Average interest rate is too high for most legitimate productive ventures, but too low for most small lenders to remain profitable with as many scammers as can exist without regulations so strict with a new market that the vast majority of applications would be denied. I'd be fine covering Bitcoin until a Dwolla transfer goes through, but really, there are much more streamlined options offered at competitive rates. Though there's lots of demand, I don't believe the lending service I originally envisioned is justified by current market conditions, and that the remaining competition is able to handle everything I was covering.

All deposits will still be paid, all loans are still expected to be paid, all other commitments will be honored. If your loan is set to "auto-renew" - at least for now, there is no problem with that continuing for as long as you wish, though I'll ask to have loans due by March not be auto-renewed while I ensure I have enough cash-on-hand to repay deposits and fund a loan I committed to make. CDs will no longer be issued, nor "re-issued."

Last day for higher CD rates. Quick reminder that CDs are personally backed by me -- even if all my loans go bad, you will still get paid.

BDK is now significantly more diversified, and a new "equity diversification" requirement has been added. I am ("BDK" is) now invested in FPGA.contract, imsaguy's lending program, and a meager 5BTC in Bitscalper out of curiosity. "Loan diversification" requirement has also been modified to be more sensible, taking into account all securities instead of just other loans.

ETA: I'm taking a break for at least a couple days. PM me if you want to talk to me. Probably faster to email me if you know the address.

~18.6BTC to lend. Will still match IBB loans. Just today and tomorrow left for special CD rates before it falls back down.

ETA: Just received a 200BTC deposit. Plenty more to lend.

If you're confused about the CD terms, I apologize. Feel free to PM me any questions (or PM theymos to ensure the [collapse] function is included in the forum update!).

[ETA: This wasn't in response to Vin]

https://bitcointalksearch.org/topic/closed-loan-request-110-bit-coins-62011

Celebrate my birthday with "special" birthday CDs all week. Each CD will return .5% greater percentage points per 30D the CD is out on principal. So, if a 30D CD and you take it out before the end of the week (2/5/12), instead of that CD paying the usual 2.5% + principal at the end of its 30D duration, it will now pay 3% + principal. 90D CDs, instead of paying 9.75% + principal when due, will now pay 11.25%.

Let me buy your love, then destroy you by abusing that trust!


ETA: I/O report for January is now finished and posted in spreadsheet listed near the top of the OP. January saw a profit of 4.677BTC after donating 5.198 BTC between IBB & BTC100.

That went quick. You guys sure know how to make a fellow feel poor. 

Quite interested in taking deposits if anyone's willing -- Have plenty of loan requests I'm unable to fulfill. I'll bump the thread when I have BTC to loan again. Assuming nobody's interested in buying CDs as I've outlined in the OP, it probably won't be for at least a week while I deal with a backlog of loan requests.

When I get a few more loans repaid, I'll be donating an amount to the extremely helpful moderator Maged, who has put in a good bit of time keeping this subforum free of scammers and alerting us to serious problems with people looking for loans. Both lendees and lenders are more able to prosper with mods like him helping ensure loans are going to people for the right reasons, and not because they hijacked an account. His donation address is 1MagedVeZqDtU4Jh5BdgvHpcWk9dXFzZY8 -- check out his Scammer alert thread @ https://bitcointalksearch.org/topic/scam-alert-old-accounts-coming-back-61500

Back open with BTC to lend. BTC to lend should be coming in rapidly after a few days for a couple months. I'm also now willing to accept deposits (see OP for rates). Will finalize the January "I/O report" when I wake up and start on February's report. Rates have been updated given new information on other lenders' loan performance. PPUSD/DwollaUSD loans are still disallowed until I'm at a ratio of USD:BTC I'm comfortable with ($11k in BTC does make me just a tad uncomfortable ).

Fwiw, I'll be sleeping, doing family stuff for 10h from posting, so see someone else if you're in need of a loan immediately. If you want a loan at listed rate, please follow the posted requirements and send me a PM.

Forgot to announce, BDK also pledges 2% loan profit (+ a 5BTC initial pledge) to BTC100. BTC100 was created to entice charities to accept BTC for donations.

hey guys, im a new user with ~22 bitcoins i dont plan on needing for a few weeks.  i was wondering how all this works and how i can set myself up to propose a loan in hopes to gain a little % in return an gain some reputation as well?

I believe my deposit (CD) terms are now adequate to function as I'd like without problem. I'd appreciate review, comments, criticisms. I should be ready to issue CDs and loans again within a week. (Edit: Might not be back by 29th)


(and thanks for the sticky!)

I agree with the sentiment behind this and will pm IBB to help support this.

Patrick
Starfish BTC thing

I like the name 

I'm announcing my continued support for a demand-free economy with a new IBB loan-matching program to go into effect the beginning of next month. BDK strongly supports a generosity-based economy, even if we're not quite ready for it, yet - I'd love to be a part of pushing us there.

Any loan IBB is willing to put money toward, contact me (after 2/1/12) and I will match their loan terms up to 5BTC for up to 21D. There is a maximum amount out toward these loans at any given time of 25BTC. (BDK is not in any way affiliated with IBB.)

I've added terms for deposits. Any thoughts? I'll probably end up making the dividend rate significantly more favorable for depositors in the future when I'm more sure of my profit margin, and reward "early depositors" - but no guarantees on that.

As well, 150BTC+ loans now require hoops be jumped through, and are only available to US residents. Monthly income/outgo reports will start being posted starting the beginning of next month. I'll try to clean up the OP today. May also be adjusting loan rates within the next couple days. Should have BTC to loan again around Thursday/Friday, but feel free to PM me prior.

ETA (1/23/12): IBB loan terms have changed. I will donate 3% of previous month's loan profits at the beginning of the next month. I also decided not to exclude older loans from the 3% donation. First payment to IBB will be made on 2/1/12.

Get ready to open your wallets! I'll be accepting deposits starting late next week. If someone wants a loan, and is a webdev handling PHP/SQL, I need a site. I have MS Paint images ready!  -- Until then, interest on deposits as well as withdrawals will be handled manually, meaning I'll only bother with 5BTC+ 14D+ loans.

I'd appreciate if someone gave me some rates/terms they'd find acceptable for deposits, knowing I have laid out a feasible way to maintain profit with what you deposit.

yes you can donate directly to me via pm, when you want to send just send me a pm and i will provide you with an address.

thank you

Oh -- Is there a way to donate directly, then?

Alright -- I'll send you a PM when the time comes. Should start getting new loans paid back mid-late next month.

thanks Kluge for the marketing gimmick, buying IBB shares. I dont get any extra BTC if you do buy IBB shares, but trading in IBB shares is good

I thought of that thinking about how high my electricity bill is for mining. I intended this to allow miners to loan against their future mining revenue to pay bills they have in USD. I do get the advantage of being able to chargeback, and because of that, might consider lowering the MPR for that particular transaction. It just depends how the third-parties would handle charge-backs in that situation. Paypal scares the Hell out of me, tbh. I'd be much more willing to fund a Dwolla account, which most miners probably already have, anyway, and it's BTC-friendly, while not exposing lendees to the risk of friendly fraud on my part. I'll update the OP.

Actually, wouldn't your borrowers be taking most of the PP risk? Theoretically, it should work reasonably well, since you will be building up trust and have a reputation to uphold here, so that should lower the perceived potential PP chargeback risk for borrowers. I might even be interested at some stage as a hedge. [Just saw it's only offered to miners.] It works a bit like a futures contract.

New term/marketing-gimmick added. 3% of all loan profit will now go toward funding the Islamic Bank of Bitcoin's interest-free no-fee loans. Alternately, if you specify prior to you paying off a loan, I will instead donate that 3% to http://tn3t.com/ who operates a couple public Tor nodes. I will not donate to major charities, as the legalities are up in the air, and some organizations ended up being told by their accountants to dump the BTC.

Also interested in knowing if anyone would be interested in being lent PPUSD, with payment due in BTC. The BTC due would be determined based on the PPUSD/BTC going rate at the time the loan's requested + interest. I figure this'd be great for miners, but'd take a bit more work, and expose me to a bit of that PayPal regime uncertainty risk.

(If you're only clicking this thread to see if loans are available - I'll update the thread title when I'm back in MI where I can access my primary wallet, so you can quit checking this thread to listen to me ramble while I try getting sleepy )

ETA: Removed section to reserve loans after getting a bit of sleep and realizing what a stupid idea it was to offer to pledge Bitcoins months in advance. If there's another insane BTC bubble, I want to cash out and get back in later, not have my BTC tied up. Tried to reword the early payment term to be more clear -- not sure if I was successful or not.

OP updated. Thanks, Chung. I may have missed some things which went through PMs, so please correct me if I screwed up. Sorry for slow response -- had a lot going on in the past couple days.

repayed
Please confirm

A pledged loan is a loan which has been reserved by someone on a specific date. If someone's expected to pay me back on 1/31/12 for instance, I know I should have that amount to lend out the next day. I post the amount I expect to have and the date I expect to have it in the "Loan reservations available" section, someone contacts me about taking the slot, and I add that to the "Pledged Loans" section.

A useful set of terms.  For clarity, what is your definition of "pledged" versus "loaned"?

New term added, and applies to all future loans (including those "pledged") and "re-loans," but not current loans out. "Sub-leasing" of Bitcoins I lend (and, as a catch-all for "clever" people, all of a lendee's Bitcoins during the loan's duration) is prohibited for non-miners. If I wanted the associated risk of HYIPs, I would invest in them myself. My loans are specifically intended for people looking to purchase goods/services using BTC which they currently don't have (or I guess if people have bills in USD, that'd be fine, too). All current lendees and those who I've pledged BTC to have been notified of the changes in terms for future loans. ETA: This rule has been slightly modified, to allow miners to sub-lease to a certain amount. Check the OP if interested.

2 other new terms added in OP. 1st is a requirement to pay in BTC. Figured it's common-sense, but worth posting explicitly. 2nd is the ability for lendees to be rewarded for paying earlier than initially negotiated. It looks kind of messy in the OP, but basically, when you pay in full, take .15% (that's an absolute .15%, not relative - so if you have a 10% negotiated MPR and pay a day early, you pay 109.85% of principal, not 109.985%) off the negotiated MPR for every day earlier from the negotiated due date it took you to pay.

This is correct.

mpr = monthly percentage rate?  (i.e., compound monthly)?

Thanks. Updated OP.

Hi Kluge,
I'm confirming that I will repay on 3/1/12 for the loan you've pledged.

(Edit: I'm on break, starting 2/5/12, ending ?/?/?? -- If you need to talk with me, PM, email or call -- prefer email contact over phone, if you don't mind.)



Total BTC currently available for lending: 0BTC *PPUSD/DwollaUSD Lending Currently Suspended*
"IBB-matching" BTC available for lending: 0BTC

CD rates for CDs purchased in February **CD Issuing Currently Suspended**[/u]
30D - principal + 2.5% @ date of maturity
60D - principal + 6.25% @ date of maturity
90D - principal + 9.75% @ date of maturity
180D - principal + 22.5% @ date of maturity
360D - principal + 50% @ date of maturity
(see terms below for additional details on CDs - header for section on deposits is colored blue)

Total deposits: 220BTC
Total BTC currently loaned out: ~800-1000
BDK Equities' FMV: ~1400-1700BTC
Total in securities: ~2000-2500BTC (for full list of loans out, deposits, equities, loans which've been paid, and monthly income/outgo reports, go here)[/b]


If you're looking for a loan...

Standard Loan Types (yes, of course these are negotiable):
Traditional 30D BTC Loan:
*112% principal due, 30 day duration, all paid back at once on due date (or using the early payment formula listed below).
Traditional 14D BTC Loan:
*105% principal due, 14 day duration, all paid back at once on due date (or using the early payment formula listed below).
Multiple Payment Loan:
*134% principal due if 90D, 120% principal due if 60D, 109% principal due if 30D, 104% principal due if 14D. If 90D loan, pay back 10% principal every 9 days until final payment, when 44% principal is due (interest + final payment on principal). If 60D loan, pay back 10% every 6 days until final payment, when 30% principal is due (interest + final payment on principal). If 30D, pay back 20% principal every 6 days until final payment, when 19% principal is due (interest + final payment on principal). If 14D, pay back 50% every 7 days until final payment, when 14% principal is due (interest + final payment on principal).
PPUSD/DwollaUSD Loans**UNAVAILABLE UNTIL FURTHER  NOTICE**:
*Receive loan in PPUSD or DwollaUSD. At time loan is given, I'll grab the exchange rate. Amount loaned divided by USD/BTC MtGox exchange rate = BTC due (excluding negotiated interest). Loans in PPUSD will take 3-5 days to arrive in your account from the time I issue it. DwollaUSD Loans will take up to 7 days, assuming there aren't more problems. This loan can be any of the three types listed above. The loan duration starts when the money is in your account, not when I issue the transfer.

Additional terms for loans [Important stuff is bolded, very important stuff is in red]:
*"Sub-Leasing Prohibition" - During the term of the loan, you agree not to lend Bitcoins to anyone for any reason. If I have evidence you are doing so, it will be noted you failed to uphold the terms of your loan. This only partially applies to miners. For miners, I want you to show me where you mine, with stats I can verify (a pool which lists mining rates publicly would be great). If you can, I'm willing to loan you what you mine every day per day-length of the duration of the loan and not hold you to the "no-subleasing" rule. For instance, if you mine 5BTC/day and want a 30D loan, multiply daily income by duration in days for max loan amount, which'd be 150BTC -- that's how much I'd be willing to loan you without the sub-leasing prohibition. Another example -- if you mine 1BTC/day and want a 14D loan, the max I'd loan you without prohibiting sub-leasing is 14BTC.
(applies to all loans made on or after 1/18/12)

*"Form of Repayment" - Loans are to be repaid in Bitcoin unless otherwise specified. I'll accept either a direct payment of BTC to 1LgJfyNohgkyzogxksENpNTy1vafZP9T6 or a MtGox coupon via PM.
(applies to all loans made on or after 1/18/12)

*"Late fees" - There are none. It'll be noted you failed to uphold the terms of the loan, but I have no interest in annoying/burdening people I have loans out to. If you'd like to donate to me for the problems your late payment causes me, well - that'd be appreciated.
(applies to all loans, no matter date lent)

*"Early Payment" - For each day you pay early (using US Eastern time), deduct .15 percentage points from the negotiated MPR you're expected to pay. This only applies on the day you pay in full. For instance, if you have a 30D 100BTC loan @ 10% MPR due 1/30/12, but want to pay in full on 1/20/12, you would be expected to pay 1.5 [.15*10] percentage points less for MPR. So, you'd effectively be paying 8.5% MPR instead of the negotiated 10% MPR because you paid 10 days early, resulting in 108.5BTC due instead of 110BTC. Assuming you've done your math correctly, there's no reason to clear it with me before sending your payment. If/when the website goes up, this should be a much more clear-cut process.
(applies to all loans, no matter date lent)

*"Extra Req's for Large Loans" - Loans of more than 150BTC require ID, a promissory note notarized and sent to my address (prior to the loan being made), a utilities bill, at least one reference I can call, and physical collateral at least roughly equal to the loan amount made against your loan. I also require a picture of you with the collateral you're using with a physical timestamp in the picture. You MUST be a US resident to apply for a loan in an amount greater than 150BTC. Extremely reputable forum members (maybe 20 people fall into this category) and those I've dealt with before with a similarly large quantity of coins are not subject to this rule.
(applies to all loans made on or after 1/22/12)

Requirements of lendee:
Must be reputable on this forum. If you're listed for non-payment here, you will be denied. Prefer at least 5 transactions with other forum users in a combined amount equal or greater than 3x the loan you're requesting. A reasonable story (with DETAILS!) is much preferred. I want to know why you can't afford what you want now, what you want the money for, and how you plan on repaying the loan. I prefer lendees I've already done business with.

Terms for depositing in BDK (dividend here refers to % principal of deposit -- for instance, 1% dividend on 100BTC deposit is 1BTC.):
*BDK holds the right to deny deposit requests. All deposits must be cleared with Kluge (PM me!) prior to a transfer to BDK's deposition account being considered a deposit and being accountable to terms for a deposit. Deposits which are not cleared by Kluge will be returned to the originating address within 48h.
*Deposits are to be in CD-form, meaning you agree to keep your BTC in BDK for x amount of time to receive dividend payments.
*CDs are transferable, so long as you notify me (buyer must notify me, too). Dividends will be paid to the owner of the CD. If you are considering purchasing an "after-market" CD, please PM me first, or consult the Google spreadsheet at the top of this post for details of the CD you're considering.
*Deposits can be withdrawn at any time, but if prior to the end of the CD terms, you receive no interest. Please allow me up to 48h to process an early withdrawal.
*CDs can be auto-renewed with dividends re-invested, auto-renewed with dividends paid to your BTC address, or paid out in full upon completion of CD duration. The MPR does not change if you choose to auto-renew. That is to say, if you take out a 30D loan and choose to auto-renew your CD at the end of each 30D cycle, you will be paid the 30D rate, not the 60D rate. However, unlike if you had requested a 60D CD, if you choose to auto-renew a 30D CD, you will be paid dividends every 30D (for a 60D CD, you would not be paid dividends until the end of the 60D cycle, assuming you do not initiate a withdrawal until the 60D cycle completes).
*If you do not want your username listed in the public info spreadsheet I have near the top of this post, you must request it. It's there both to ensure transparency of BDK and, were you to want to sell your CD to someone else, give buyers a quick & easy way to ensure you actually hold the CD. (This does not apply to lendees. All lendees will have their username and basic loan information noted publicly - no exceptions.)
*CDs cannot exceed an amount greater than 200BTC, and one person is allowed to take out a CD only once per 7 days (this is to stagger CD due dates and prevent me from running into a potentially-disastrous liquidity problem if I can't secure an inter-bank loan). Minimum CD value is 10BTC.

BDK Self-regulation Programs

*"IBB Donation" - 3% of loan profits will go directly to senbonzakura to fund the IBB. The IBB offers no-fee, interest-free loans in small amounts. (edit on 1/23/12 - "loan profits" do not include income from equity sales or dividends. "loan profits" will be calculated and donated at the beginning of each month. Information on loan profits & amount donated is available for view on the Google Spreadsheet at the top of this post.)
(in effect)

*"BTC100 Donation" - An initial 5BTC + 2% monthly loan profits (starting February) will be donated to BTC100 to encourage charities to adopt Bitcoin as acceptable payment.
(in effect)

*"BTC Equities Program" - At any time, values in safe BTC equities are to make up at least 20% of total securities. This rule is in effect to ensure loans are not just going toward gamblers & folks looking for a hedge, but also to folks doing something productive with the BTC. This program is also intended to allay fears of BDK bankruptcy for depositors.
(goes into effect on 2/1/12)

*"IBB No-Interest Loan Matching Program" - If you have a loan the IBB agrees to cover, BDK will match it with no interest charged, up to 5BTC for up to 21D. Gratuities appreciated but not required.
(goes into effect on 2/1/12)

*"Loan Diversification Requirement" - At any time, no loan is to make up more than 10% of total securities' value.
(goes into effect on 3/1/12) (current largest single loan: ~10.5% total)

*"Equities Diversification Requirement" - At any time, no equity is to make up more than 40% of total securities' value.
(goes into effect on 4/1/12) (current largest equitiy: ~62% of all securities)

Last Updated: 02/05/2012 @ 6:48am (Eastern US)