Topic: [BitFunder] Mining difficulty futures now available: CoinBr.iDiff-* (Read 5574 times)

Thanks TAT, too! Yes this means we paid out all remaining bitcoins to investors in full today

Just popping to thank CoinBr for making good on the iDiff payouts despite the exchange closings, rise in bitcoin price, etc.

This shows responsibility in managing risk, and it's appreciated.

Would do business again

CoinBr.iDiff-O paid 0.06094826 per share directly to shareholders' Bitfunder addresses, thus concluding iDiff history. Due to our funds stuck on Bitfunder, we made private agreements with largest shareholders to pay them only 90% today and  the rest in near future after liquidating some of our other assets.

We do not plan to reopen the futures in this fashion elsewhere at this time. Thanks to everyone who traded with us!

Since Bitfunder is closing, we took following steps:

CoinBr.iDiff-E December had no shares sold yet, so it got discontinued immediately.

CoinBr.iDiff-O November will keep trading normally until Bitfunder closes, and on expiry date (November 20) it will pay out directly to the address in your Bitfunder profile, as published in the assets list. Most likely it will be discontinued after that as well.

For ex-BTC-TC shareholders, transfers of CoinBr.iDiff-O to Bitfunder will not be possible anymore after tomorrow and above applies.

The account was verified and CoinBr.iDiff-E opened for trading. I know, the projected difficulty numbers are scary...

Just chiming in with update on new Bitfunder requirements. I (as CoinBr owner) am EU citizen, so we plan to continue maintaining iDiff futures on Bitfunder in normal cycle. Already submitted my documents to weexchange and am waiting for verification.

CoinBr.iDiff-O expired prematurely after difficulty hit 100M limit and paid out 0.01BTC/share. Currently it is locked and November issue is under preparation.

Have a nice Sunday!

https://bitfunder.com/asset/CoinBr.iDiff-E August just paid out 0.00508103 BTC per share and October issue will be introduced both on BF and BTC-TC. We have to think at least twice about the parameters, with current ~2% daily hashrate growth

Our 89 offer for CoinBr.iDiff-O sold as well. We are not willing to risk more, so unless situation improves (difficulty stalls) there will be no more offers from us.  However, to prevent the asset trading way above maximal payout, we erected ask wall at 0.00999, which is obviously not meant to be bought into.

You will profit if difficulty ends up being higher than 28 million on July 17.

If I were to buy 1 share of of CoinBr.iDiff-O @ 0.28 will I make any profit if I dont want to short sell ?

Yes, it is a compromise with current uncertainty caused by having few ASIC vendors with unpredictable mining/shipping. If the ceiling were higher, the price would have to be higher, too. Already it looks that iDiff-O July will be considerable loss for us and we had to learn from it.

With initial price at .0049, but max payout at .006, seems like you put the ceiling on payouts a lot lower this time around.

CoinBr.iDiff-E June paid out 0.19339258 per share.

August issue is open for trading, but from now on the value will be subdivided by 100. We want to keep unit price at reasonable level in expectation of rampant difficulty increases in near future.

No. It's in fact dividend payment without any fee.

Does bitfunder charge a seller 1% fee for liquidation at maturity?

Yes, if difficulty spikes to 35 million(EDIT: this limit is different for every month, check the description), they expire and pay off prematurely.
Yes.

Is there forced buy-back for the short if difficulty spikes?

The shares do get liquidated on expiration?

CoinBr.iDiff-E price at its lowest ... now only at 0.17 BTC.

Thinking we now have silence before ASIC storm in June and difficulty will be over 17 million on June 19? BUY!

CoinBr.iDiff-E April future liquidated with 0.08974296 paid per share. Jun issue under preparation.

There were few chaotic trades ysterday jsut before closing, I can understand some wanted to liquidate prematurely, but there were some new shares bought at a loss too.... if you don't understand how this work, don't be shy to ask!

As CoinBr.iDiff-E expires in 4 days (on Wednesday midnight UTC), seems it will be interesting till last moment. If you don't want to get only 0.07672999 paid per share, mine hard! 

CoinBr.iDiff-O paid 0.04847647 BTC/share as per current difficulty, liquidated and reissued with 15th May expiration.

Also,CoinBr.iDiff-E now sells again at 0.095!

CoinBr.iDiff-E April now open. Ask set accordingly to our assessment of difficulty to stay < 9.5m We'll see... Bids were left as is, you may want to update them.

totally acceptable. Just wasn't sure how it would go down technically (I don't know bitfunder from issuer perspective at all)

Yes, we'll start with clean slate. MPBPT works this way, too. Both iDiff and MPBPT are investments where you can either profit or lose part of your investment, so keeping the shares would require some kind of "negative dividends". It's simpler just to remove all shares and pay everyone out at expiration date. Another possibility would be mutual fund with fixed pricing based on underlying assets, maybe that will happen in future.

what happens to existing shares? can you "decommission" them?

CoinBr.iDiff-E February expired as planned, paid everyone 0.03651011 per share (current difficulty) and also returned remaining collateral 0.08-0.03651011 = 0.04348989 per share to people who were short selling. In few days it will be reintroduced as CoinBr.iDiff-E April.

I'm just one of issuers there.

Is CoinBr (or jurav) affiliated with bitfunder somehow?

Ukyo's idea, to give due credit. As well as to put CoinBr right in the names of the assets

Ah, okay. Cool.

E = even
O = odd

How did you pick O and E?

Thanks for observation, funny how we checked for everything and this escaped. Now I see the problem, it's inconsistent with MPBPT, and -O/-E should refer to closing month, not starting one.
Since there were no orders/transactions so far, we decided to switch them. It will be thus:

CoinBr.iDiff-E expires on 20th February

CoinBr.iDiff-O expires on 20th March

After iDiff-E expires, it will be reintroduced with third wednesday of April expiration, and so on, to keep up with MPEx IDIFF dates.

The summary of the O and E assets are messed up. CoinBr.iDiff-O says Feb too.

CoinBr.iDiff-* futures are suitable for hedging mining operations/securities (for example, against new technology) and other kinds of short-term insurance/speculation against hashrate/mining difficulty. The share value is directly determined by current difficulty - as difficulty in satoshis. So, if CoinBr.iDiff-* expired today with difficulty 2968775 , every share would be worth 0,02968775 BTC.

This asset is available for shorting to anyone who provides collateral. Please inquiry on [email protected] about doing so. Escrow at trusted third party is possible.

Sample scenario 1: Joe Miner fears his GPU becoming obsolete, so he buys 1000 CoinBr.iDiff-O at 0.07 for 70 BTC. The difficulty indeed rises to 10 million by March 20, so his shares will now liquidate at 0.1BTC, yielding him 100 BTC, with 30 BTC profit.

Sample scenario 2: B.Mixon's research unveils that no significant amount of ASICs will be delivered in February and decides to cash on it. Provides 100BTC collateral and gets 1250 shares of CoinBr.iDiff-E. Decides to sell them for 0.045, yielding 56,25 BTC. On 20th February the difficulty indeed stagnates and it is 3.5 million. He has to cover 0.035 per share. His net profit is 56.25-1250*0.035 = 12.5 BTC.

They are inspired by X.IDIFF futures on MPEx with improvements:

• Maximal coverage is clearly known in advance. In case of MPEx futures, they are covered somewhere more than 2.9x last quarter difficulty, it's not publicly known how much exactly.
• More short-term and will be renewed every month with expiration date of two months instead of quarters away. I believe that in current quickly changing landscape longer time speculation is not feasible.

Update July 2013: Both iDiff-O and iDiff-E are now split by a factor of 100 to make the prices more accessible. This means all prices and payout per share were divided by 100, otherwise the assets keep working as before.