Topic: [BTC-TC] Deprived Mining Speculation (DMS) - page 40. (Read 198958 times)

Will need to consider carefully how to proceed from here.

In principle the options are :

1.  Move to another exchange,
2.  Close down - and distribute funds approximately in ratio to what market prices were just before the announcement.

Problem with #2 is it's going to be hard to have any sort of rational discussion over how much should go to mining and selling as everyone with an opinion likely has a lot of one and not much of the other so isn't unbiased.  Market prices is the only way to go - as those represent the prices people were happy to hold at (noone was trying hard to buy more of whichever they held or was desperate to sell into bids - or they'd have done so).

If problems arise with recovering investments then loss/delay from that MUST go to SELLING not MINING as SELLING were always getting the benefit from investment.

A few things seem pretty obvious immediately:

1.  No new investments should be made.
2.  Where investments can be cashed out they should be - so there's no further changes in NAV/U.
3.  Debatably I should withdraw all funds to a BTC wallet under my control and only return them when distribution is to occur.
4.  Trading will be disabled on PURCHASE - I won't sell more shares now obviously and also I can't redeem them until I'm sure all investments are safe and will be recoverable.  It would be bad form if I allowed sale back of PURCHASE then found we couldn't get one investment back and so those who had sold back had received more than their fair share.
5.  Similar to 4 I won't be redeeming pairs of MINING+SELLING.

This isn't a situation explicitly covered in the contract - but rest assured I'll resolve it in the fairest way I can.

BTCT will operate as usual until October 7
So in theory we could have two difficulty changes and then the buyback ;-)

Altough I would prefer for DMS to exist on other exchange. Ukyo is located in China? What about Havelock or Cryptostocks (I have no experience with CS)?

October 7, 2013, all forms of secondary market trading will be halted on both sites.

I would caution against moving to another exchange, Btct's shutdown leads me to believe that the legal threat posed by regulatory bodies is real enough to potentially scare off the owners of havelock and bitfunder as well. I would rather have Deprived carry out a buyback in order to fairly distribute the remaining assets so I can withdraw them to a safe haven instead of leave them in now the very precarious hands of securities exchange operators.

I guess option 2 applies to this situation the most. Option 1 mostly covers a voluntary shutdown (which has to be approved by a vote).

There's also option 3, which I'd prefer: Move to another exchange and credit the shares there based on the BTCT records.

I guess option 2 applies to this situation the most. Option 1 mostly covers a voluntary shutdown (which has to be approved by a vote).

There's also option 3, which I'd prefer: Move to another exchange and credit the shares there based on the BTCT records.

BUY-BACK TERMS

It is the intention of Manager that this fund should be a long-term prospect (the prices of all three securities will gradually fall) however an option must exist for a shut down.  In the event of shutdown then DMS.MINING (and any outstanding units of DMS.PURCHASE) would first receive a dividend equal to the LOWER of :

a) All funds held by the securities,

b) 365 times the daily dividended due at current difficulty.

The scenarios in which closure under these terms could happen are:

a) Manager proposes a shut down and this is approved by a vote of DMS.SELLING units AND is voted in favour of by a majority of voting units not held by the Manager.  It is envisaged that this scenario would happen if difficulty rose massively AND there was no further interest in purchase of more DMS.MINING bonds.

b) Capital falls such that it is too low to pay 100 days of DMS.MINING bonds for 2 successive difficulties (i.e. before AND after a difficulty change).  In that scenario it is apparent that all of the capital will go to DMS.MINING holders (and DMS.SELLING holders got it totally wrong) so closure and payment of all funds to them immediately is the only fair course of action.

Following payment of the dividend to DMS.MINING, any remaining funds are divdended to DMS.SELLING (and to any outstanding units of DMS.PURCHASE).

Manager may, at his discretion, choose to make final payments by means of a forced purchase rather than through dividends (incurring trading fees but freeing the tickers up for reuse).

UNFORESEEN CIRCUMSTANCES

It is possible that cirumstances could arise where the Manager is unable or unwilling to continue operating the fund.  Should this position arise then immediately the Manager must:

Cease making new investments,
Liquidate investments where possible,
Cease selling new DMS.PURCHASE
Offer redemption at 100% (less any exchange fees) of NAV/U for DMS.PURCHASE and bundles of equal numbers of DMS.MINING and DMS.SELLING where it is possible to do so whilst retaining at least 50 days dividend cover in liquid BTC for the remaining DMS.MINING.
Manager must further seek to either:

Find a replacement manager to be approved by a majority vote by both all outstanding DMS.MINING and all outstanding DMS.SELLING.
Propose a split of funds between DMS.MINING and DMS.SELLING to be approved by a majority vote by both all outstanding DMS.MINING and all outstanding DMS.SELLING.
In the event of a vote with a proposal to split funds being left up for 7 days and (in either vote) the total of (Yes votes + No votes) being less than 50% of all outstanding shares then the Manager will determine a fair (in his best judgement) split of funds and execute final payments in accordance with that decision.  This clause is added specifically to address the scenario where most shares have been redeemed with a large part of those remaining outstanding being unable or unwilling to participate in reaching closure.

IMPORTANT NOTICE TO ALL BTC TRADING CORP WEBSITE PARTICIPANTS

As a result of recent changes in the virtual currency regulatory environment, the btct.co and litecoinglobal.com virtual stock market websites will be closing down.  The following is our current schedule:

Approximately a week ago, both sites were closed to any new users and new asset creation was disabled.
 
Effective immediately, in conjunction with this release, trading will be halted, all order books cleared, and trading re-enabled.
 
October 7, 2013, all forms of secondary market trading will be halted on both sites.
 
Approximately October 31, 2013, both sites will be taken offline.  It is strongly suggested that participants take the following steps to protect all of their virtual assets:
 
All participants should take steps to transfer all of your BTC and LTC (and any other data you wish to keep, such as CSV trade histories) held on the sites to your personal computer or another trusted site.
 
All participants should make sure that their public BTC or LTC address is properly set in the Account page on the Settings tab whereby it can be shared with all issuers.
 
All “issuers” should have the contact information concerning their “investors”, and we ask that all “issuers” communicate with their “investors” as soon as possible as to how they will ensure that all are treated appropriately.

We regret this development. However, we want to do everything we can to minimize problems arising from this transition.  It is our goal to keep this shutdown orderly and calm.

Thank you for your participation, creativity, loyalty and sense of community over the past year.  Additional communications will follow as we work out the details.

Ethan Burnside
BTC Trading Corp.

While it may appear like that, do the math, sum up the geometric series, taking into account that each cycle only lasts for 14 / (1 + D) days and you'll see the simple expression that I mentioned previously emerge.

Value != price.

The right price of MINING does not depend on what the competing hashing-related stuff is doing. The only thing that should influence pricing for DMS.MINING is the expected dividend-payments (and the speed with which they come). And this in turn depends on the difficulty evolution.

You are using 14 days here for the length of the difficulty period, and that is not correct when difficulty is increasing. Therefore your formula will overestimate the value of MINING.

Simple mathematics tells us that if the difficulty increases by the same relative amount every time, the total amount of dividend paid out by MINING over its entire lifetime is:
14 * X / D

I don't know the right value price for DMS.mining. A right value price could be 0.002 BTC per share based on the block eruptor blade pricing at BTC guild. (not available for international shipment)