Topic: BTC:USD and BTC:EUR Hedging Service (Read 351 times)

Over the past week, we have really enjoyed the BTC community and the cooperative yet commercial spirit that run through it.  For this reason, we thought we would have a go at doing things your way for a change / test.  What follows herewith is an outline of a bitcoin business model that we have modelled and intend to release within the next couple of weeks. Your commentaries, feedback and contributions are all greatly welcomed.

BTC currency hedging service:
Servicing parties with an exposure USD:BTC and EUR:BTC who, for risk management purposes, cannot afford the consequences of adverse exchange rate movements.  All transactions will be crypto-currency based such that any payouts received will always be BTC even where a BTC position is hedged to preserve a fixed USD or EUR amount.

Will initially require a deposit just shy of 30% of amount hedged however this will be reduced substantially when the portfolio grows to sufficient size and diversity such that individual client hedge positions can be paired and offset within the portfolio rather than resorting to a 3rd party margin trading facility (eg. One protecting a BTC value and another protecting a USD value).
We intend to offer a variety of options such as full hedge, one-way hedge, one way hedge with shifting value protection, etc.  The fee structure has yet to be defined however will likely be based on a premium/discount to the buy/sell at entering into and exiting from the positions.


To reiterate:  your commentaries, feedback and contributions are all greatly welcomed!