Topic: [CryptoStocks][Bitcoin Arbitrage Fund]Fund was closed, we bought back all shares (Read 18487 times)

Good god. These challenges weren't something that you guys considered before soliciting 160BTC?

Yes, please let me know when you have that new great idea ready 

Too bad it didn't work out, looked promising. My shares were bought back as promised.

Well done and all the best for the future.

The only surprise here is that it took almost two weeks before you were proven correct.

I don't want to be that guy that says: I told you, but...

Too bad this didn't end up panning out. +1 on the buyback as promised however. Gains a certain degree of trust in my book for following through with that at least.

BAF trade stopped,  we bought back all shares at price 0.01 BTC.

Because the price of BTC going up too fast, we can't buy back the original amount, so we decided to close the fund earlier.

As a shareowner, the most important thing, they hope the OP may take good care of their assets and not to encounter any scram.

We are also shareowners, we lost 35 BTCs on several shares such as Labcoin, SAI, CPTM, so we know that feelings.

We are sorry we can't make more money for our shareowners, however, we will keep our promise to take care of shareowners' assets.

So, if you are shareowners of BAF, please notice this thread or BAF announcement on Cryptostocks during the following three days.

Though we lost some BTCs, it is OK, many people trust us and help us a lot.

We are in charge of a little private artraging fund, which is from RMB => USD => BTC => RMB, it is easy to operate.

And we are also planning another project, which is really a good idea, so we will be back a couple months later.

Thanks to all shareowners, thanks to everyone who trust us and help us.

BYE

We thought of buying and selling BTC at once, but there is still one step to transfer a half fund in USD to exchange with low price.

If the price go up during the transferring time, we will encounter the same problem as what we met now.

BTC => RMB => USD => BTC, the last step is the most dangeous.

RMB => USD => BTC => RMB, this is which we did before,  it is easy to operate because the two steps USD => BTC => RMB can be finished during one or two hours.

Yeah, you are right, now we encounter a big problem.

We can't buy back the amount we sold.

If there is no chance to buy back, the fund will be closed.

One round of arbitrage and they've already failed? How so?

Its arbitrage if you do two separate trades simultaneously like buying a car from one guy and immediately selling it to another one. If you want to do arbitrage with currencies, you will need funds in both currencies to do simultaneous trades. What you did was risky and failed.

If you guys are doing arbitrage, please keep two things in mind.

1. Like Mageant said, either have a setup for simultaneous trading, ie spare capital

2. Or your fund should be in FIAT and dividends paid out in BTC, based on dividend date BTC value, otherwise the fluctuation in prices will kill ya.

cheers

If there is any other info available Id also be interested.

Could be interested in this as well but I would like to see some examples of trading.

Thank you.

Got a few shares + keeping an eye on this thread.

Yes, you are right, we considered that before.

We thought we sold btc at a very high price yesterday, but we are wrong. There are too much crazy and rich people in China.

Next time we will do the arbitraging in this way.

We apologize to shareowners. If this arbitraging process loses some BTCs, we will pay for the loss.

IMHO it would be better if you sold and bought the Bitcoins on the two exchanges simultaneously.

That means you wait until the funds arrive at Bitstamp, and then you buy on Bitstamp and simultaneously sell on okcoin.

Then you have absolutely no risk of price fluctuation.

Yeah, we will.

We hold our btc on OKCOIN.com now.

We will sell all btc out within 12 hours, then we will update the arbitraging progess information.

hi Eric.DarkSpirit

you should be publishing the exact trade itinerary in close to real time

e.g.: 12/12/2013 10:00:11GMT bought 220BTC@500USD btc-e
       12/12/2013  10:12:00GMT sold 220BTC@3350CNY chinabtc

Yes, you are right.

We are also waiting for the verification of cryptostock.


Bitcoin Forum time: November 17, 2013, 01:05:06 PM

We got Advanced verification from Cryptostocks just now.

Bare in mind that btc-e need ID check for wire transfers and might hold you cash until you provide them one.. also I am waiting on at least cryptostock verification imho thats what holding some of investors down.. 

We think the most imorportant thing in the btc share market is to keep the value of btc instead of being stolen by someone else.

We will do this for shareowners. 

Maybe you are not satisfied with the first dividend.

Given two choices, the one is less dividend, however, your btc is safe;  the other is high dividend at first, when more shareowners come in, the OP run away or release bad news, let the price of shares go down to zero.

What is your choice?

As for the time of arbitration round.

Because of different transferring method, the average time between arb. rounds will vary from 2 days - 15 days.

If we bought btc-e code, this is the fasted way to transfer USD to btc-e.com, however, we can't do it now because the code's additaional profit is more expensive than our expected profit. For example, the code price from RMB to USD is 6.7 now, however, the offical exchage rate from RMB=>USD is 6.12. So the man sold the code may make 9.4% profit, which is higher than our expected profit 5-6%. We can't take it.

So, we have to transfter USD by International Wire Transfer, which will cost us 1% or more. The whole time may be 15 days.

Digging the vibe with you guys so far and not to shabby a dividend payout either btw   How long does an arbitration round typically take?

Thank you. That is a mistake, we forgot to fill the whole sentence completely and we rewrote the announement within 3 minutes.

We bought some shares before, and we lost all investment and went through bad feelings.

So we want to be good OPs and consider more for shareowners.

I think I just shat myself. I first read your if cryptostocks shuts down oneday as Monday and it freaked me out!!

Really dig that you guys will buy back at original cost though, speaks volumes if followed through upon should the unforunate occur. 

*big sigh of relief

After consideration, we don't want to change share market now. The reasons are as following:

(1) There are some scams on CryptStocks, because they don't check projects' possiblity and the OP's experiences.

However, this is why our project was listed on it. We didn't have any remarkable experiences and we still had a chance.

(2) Whether a project is a scam or not, it depends on the OPs of projects instead of share market.

If we can respect all shareowners' rights and don't take any money which doesn't belong to us ,we still can get good reputation on CryptStocks.

So we promised to buy back all shares at price 0.01 BTC if the fund is closed oneday, so that our shareowners would lose nothing.

However, we may make less money than we expected before. It is OK for us, we will get good reputation and we can list other projects with more profits to make money.

Yes, we also noticed this, so thanks to all shareowners.

we will do our best to keep these assets and get more profits.

Thank you for you report, It is fine now. We changed the url link from "https://" to "http://"

Thank you very much.

Wow, seems like someone just gobbled up 2000 shares for 20 BTC.

Your images don't come through because:

We sent our passport twice last week, but we can't receive any information from CrytoStocks.

The fist time is at 11/11/2013


The second time is at 14/11/2013


Now we are waiting for the reponse from CrytoStocks.

Why Verification Level is still none?

Are you take it seriously to get Advanced Verification?

Taking a bit of a gamble on you here and hopping on board for a few shares

Hmm.........

Maybe you are right.

1. There will be the first dividend tomorrow, don't forget "after 7 days".

2. We promised to invest 40 btc or the same value in USD.

3. We expected 10%-13% profit per rount three days ago, however, based on observing results during recently three days,  the profit will reduced to 5-6%.

4. Because of different transferring method, the average time between arb. rounds will vary from 2 days - 15 days.

If we bought btc-e code, this is the fasted way to transfer USD to btc-e.com, however, we can't do it now because the code's additaional profit is more expensive than our expected profit. For example, the code price from RMB to USD is 6.7 now, however, the offical exchage rate from RMB=>USD is 6.12. So the man sold the code may make 9.4% profit, which is larger than our expected profit 5-6%. We can't take it.

So, we have to transfter USD by International Wire Transfer, which will cost us 1% or more. The whole time may be 15 days.

It's very nice that you've had a positive experience thus far. If scams and trainwrecks behaved consistently throughout their operations, they'd never attract their marks in the first place, and you'd never hear much about them.

Consider this:


This stuff, by its nature, seems dandy in the beginning, unless you have the experience and/or relevant knowledge to enable foresight. For this reason, when authoritative figures point out that x venture or y idea is not worth your time, fighting the foresight is the wrong move.


What the "site" is like doesn't particularly matter. The point is that the very premise of encouraging users to create their own securities sufficiently belies a gaping lack of understanding of what securities are, and of how an exchange operates. While they're not necessarily bad things in themselves, customer service, websites, and so forth cannot do anything to change this fact or improve the prospects of the "service".


Hey, my pleasure.

hi

1. Whats the first dividend?

2. Will you reinvest (increase the equity taking part in the arb process)?

3. Whats your projection of the NET(after exchange rate loss, banking fees) profit per Arb. round?

4. Whats the expected average time between arb. rounds?

ty

Cryptostocks has been around for a while. The operator has a long history of his altcoin exchange getting "hacked" and his securities exchange had nothing happening on it because who wants securities demoninated in devcoins, or shares of the Altcoin exchange that was hacked at least twice this year.

Cryptostocks is only finally attracting attention because every similar zoo in their marginally better iterations: GLBSE, Bitfunder, and BTC-TC have died. The only thing that seems to have insulated Cryptostocks from that fate was its nearly complete disuse.

The Vircurex IPO was their one big thing so far. Vircurex is also run by the Cryptostocks guy. That  cryptostocks's one big dance was such a shit show suggests the operator is actually incapable of providing the services he purports to.

No one wants to be scammed or lose their money here but Play Exchange is not a word that comes to mind looking at Havelock or Crypto-Trade.   My reasons for suggesting Crypto-Trade over others is because I have come to have trust and faith in it from the months that I have been using it, and so far there has not been any behavior exhibited by the site that has caused me to panic or be concerned, I cannot say the same of other crypto-coin sites some who will at very short notice and at no consideration to their users will remove coins (panic dump recently ), are changing/removing currency pairs, or even worse they got hacked/corrupted DB/wallets are just a few examples.  This type of behavior has lost many traders money as the site made their holdings disappear, worth less or just plain worthless.

On CryptoTrade I have noticed that the support from the site towards their users has been professional and courteous in chat and AFAIK no one there has lost their BTC, altcoins or FIAT stored there.  Some people have experienced delays longer then stated max of 24 hours when withdrawing their FIAT (they usually vent in chat about it) but from what i can tell its solved in a reasonable amount of time and the integrated messaging system (another feature only found on this exchange!) allows the site to send a private message to site users and keep them apprised.  Users can even message each other.  

Now that the site has expanded to integrate a securities exchange, dividends are added to your existing balance on the site, so I won't need to wait for smallish dividends to accrue so I can withdraw or to mature in my wallet so its not eaten up by tx fees.  Its there on the site ready for my use.

The launch of the securities is not something just happened overnight, it was mentioned over a month ago as something being considered after the closure of those other exchanges, and has now progressed to becoming a reality this week.  It seems to me that alot planning and assessment has gone into it before it was launched,  and so I am more confident about using this site then any of the others.   Any securities that pass the verification satisfactory for their listing can be sure that users of the site will consider investing in them there because of the added security and convenience provided.  

I hope you can take a decent look at the site and point out any concerns or potential problems that are specific to Crypto-Trade, there is always going to be some risk but I think they got it down to minimal and if there existed a ratings system for crypto exchanges/securities they would be in the A's.


Thanks for the link,  I hope more users read it as its very informative and will save them from using high risk sites.

Ah I see, so it's not a problem with the exchange itself, just for the investors looking for legitimate businesses?

Head, meet desk.

The idea that anyone would actually encourage yet more citizen finance just boggles. It is not the fact that play exchanges were "in the US" that caused their shutdown. It is the very fact that they were run by unqualified people catering to anyone and everyone imagining themselves capable on the basis of passion and nebulous "hard work" that caused, and will continue to cause, their demise.

https://bitcointalksearch.org/topic/vircurexcom-and-cryptostockscom-compromised-201674
https://bitcointalksearch.org/topic/m.3355536
https://bitcointalksearch.org/topic/m.3549623

Serious question, been hiding in a cave the last few months...what's so bad about cryptostocks?

Crypto-Trade only launched their securities a few days ago, and it was as response to the closure of BTCT & LTCGlobal, the assets currently there are related to the owners/exchange and already paid their first dividends for the month.  They were  previously listed on BTCT and LTCGlobal before they closed. It highly probably that first few securities that list there will do quite well, and the popularity of the exchange has risen signifigantly in the past few weeks.  It also the only securities site with a chatbox and lots of cool friendly people there

Havelock is established and trusted,  but before you make a decision I would like to suggest you look into Crypto-Trade - link is in my signature.  Their securities platform is really new and has opened this week and allows a security to be listed in BTC, LTC, XPM or PPC,  but they have been around for some time as a currency exchange for the main crypto currencies and fiat which would may useful for your arbitrage. It would be my preference now over havelock as it has the advantage that dividends paid go straight to account ready for my own trading on the site without the need to transfer/withdraw.
The interface is also alot more familiar to those that have used BTC-TC/LTC-Global.  It is also not US based/owned/hosted and will not have the problems that those exchanges and bitfunder had.  It offices are located in Hong Kong, which may be of some convenience for you as well.

Like other exchanges it also will allow you choose how much information you wish to provide to back up your identity with eg: passport, address, phone, social networking etc and the users will be able to see this info on site and make their decisions on whether to invest or not.


heres a screenshot i made earlier that shows part of the create security page:
[/center]

There are too few securities on Crypto-Trade, we are afraid.

Btct.co was closed, and bitfunder is about to be closed.

Maybe Havelock Investment is the last choice.

how's cryptotrade?

We are considering this issue seriously.

It seems people really dislike CyptoStocks.

Please consider using a different exchange from cryptostocks to list your fund with.

Exchange rate rom RMB to USD will be 6.09, which may be changed according to the price of the People Bank of China.

Volumes every round  = 40 BTC (which is invested by OP) + all shares income(which is invested by shareowners)




Really good guide for us,  and a lot of information, we will read it carefully and try to learn something.

Thank you very much. You help us a lot.

Not that "verification" matters there anyway.

OP, see here.

At what rate do you do forex exchange of RMB to USD? What volumes per transaction do you do?

New informtion was updated just now as following, thank you for your understanding.

"The first dividend will be paid after 7 days, then we will start the first arbitraging process."

In order to reduce the period of each arbitraging round, we may take the fastest way to transfer money. 

However, doing this will reduce our incoming.

I'm willing to purchase a few shares, but when do you plan on starting your first arbitrage round and how long will it last?

We will withdraw Bitcoins not USD from btc-e.com, so things may be more simple.

We tested to withdraw 50 BTC, after one minute our wallet received the exchange information.  It is very fast.

From a European point of view, at least getting money to BTC-e was easy (SEPA transfer started Monday, money
available on Wednesday) and fast. And the fees of 1% (when you deposit 1500€) ist also just fair.

Getting money out is more of a problem (higher amount needed to get the good fee and not the minimal fee).
But I never tried this.

trepex

Thank you for your emphasis.

We really didn't consider such a thing, maybe we have to think about transferring our fund to another market ?

Do you have any advice ?

We really appreciate your attentioin and your questions.

This is one of our accounts on btc-e.com, some information was deleted, you can judge whether it is true or not. And the amount of BTC will help us to withdraw BTC easier.
 


This is one of our wallets.


Maybe you will ask why we don't take all of our assets to arbitrage. Actually, we are long-time BTC holders so that we can benefit from long-term BTC booming. 160 BTC is not so much for us, but we are willing to do such things to get investor's acknowledge.

As you said, maybe we have not remarkable scores to show, but everyone should have a chance to start. Otherwise all of us will never make an success IPO except those who made one before.

We took about 50 BTC to arbitrage each round, and made 15 BTC on our 3 rounds arbitraging activities. Average 10% profit, It is not a remarkable scores but we think it is nice to us.

So we didn't said we must acquire 15% profit rate every round, but we want to get more profit for shareholders and ourself.

If the one of the exchanges closes, we still have choices, there are several exchanges in China, there are serveral exchanges in the rest of the world.

If one exchange become more expensive than another, we will change the arbitrage path, it is still ok. For example, the bitcoin pirce of bitstamp.net is higher than btcchina.com, so the arbitrage path will be:

Deposit RMB to btcchina.com  => Buy BTC => Transfer BTC to bitstamp.net => Sell BTC => Withdraw USD to Hong Kong => Exchange to RMB => Deposit RMB to btcchina.com

As for fund closure, we mentioned in our document, there is when and how:

If the difference disappears, then management will close this fund giving 30 days notice. All assets in the fund including each share's value will be liquidated on the respective markets and paid to shareholders. Unpaid dividends will be paid to shareholders at the same time after 15% management fees.

Comparing with other prospectus, the subject of this fund is very easy to understand, and it can do nothing but arbitrage. So we think we should not make simple things more complicated.  

Thank you for your questions and advice, which are really helpful to us.
We hope you can help us to make BAF better in the future.

 
Thank you for your frank words.

This is the prove that we also bought Labcoin shares, we bought at the highest price 0.0037, and we hold them till now.


We really hate such a scam and we are not willing to become them.
Anyway, saying is nothing, action is everything.

Most of all, if you really read the shares part in our document, you will know one important issue, that is, We issued 16,000 shares, that is all for investors.

WE NEVER TAKE 20% MONEY FROM INVESTORS, WE INVEST 40 BTC TO THIS FUND BY OURSELVES AND ACQUIRE DIVIDENDS ALONG WITH OTHER SHAREOWNERS, THAT IS THE SOURCE OF 20%.

So we can't benefit from shares, the only way to make money is arbitaging.


We really didn't heard that before, thank you for your information.
We will check and consider it.

CryptoStocks lists blatant scams. Why even do business there?

I never posted in threads like this, but, considering how many people actually bought Labcoin, it might be helpful.  So:

OP wants your money.  If you're happy with giving him your money to trade 20% of it, and you're happy with paying 15% management fee if the gamble pays off, by all means go ahead.

Please keep in mind that OP's soundest exit strategy is saying "Okthxbai," or
(and this is more graceful) remaining incommunicado for a few days, thus inducing panic, letting the share prices tank & buying them up for nothing (rinse & repeat as needed).

Or any of the 101 proven methods of taking away your coin.

I apologize to the 99.9% of the folks reading this.  Yeah, i know you know.  The intended audience, both for my post & this entire thread, is the remaining clueless .1%.

*To folks asking for dox on bitfunder:  You're planning to mount international legal proceedings, rly?  Over a few BTC you've invested?

Right, if you are provided with 160BTC, successfully arbitrage, and then pay out dividends, then they will know that you can at least do what you say that you will.

Providing ID to cryptostocks is great, but it's not enough - it would be good to know who we're dealing with here before your entrusted with that much currency. I think you'll find people reluctant to invest with no credentials from you.

So many questions. How many 'round' have you previously done? How much money have you made so far? Do you still expect to make ~15% per round with the fees taken into account? What will you do if one of the exchanges closes, or one become more expensive than another? How will you close the fund, if necessary? What factors could lead to a fund closure?

There are SO many questions you haven't answered here. Look at the prospectus at any of these other securities that were listed on BTC-TC, especially, or BF - their are quite a few pages long, not a handful of paragraphs with no credentials.

Good questions:
1) We had posted email and passport to Cryptostocks to get Advanced Verification.
2) We don't have any other funds and stocks, however, we have performed arbitrage for several months and got nice scores.

Additional, https://btcUtiliy.com sells domains which can be paid in Biticon, it is a new try.

In fact, arbitraging is not a complicated activity, if someone finishs a round, then he will know everything.  

The biggest question here is (two actually):

1) Who are you?, and
2) Why should we trust you with a collective 160BTC?

Do you have significant trading experience, either in Fiat, BTC, or other exchange traded funds/stocks? How long have you been involved in BTC related activities and exchanges? Do you have any previous ventures? Were they successful or unsuccessful?

These are big questions that need answering.

Yeah, you are right, BTC-e's funding methods are particularly annoying. We have another choice bitstamp.net or we may transfer bitcoins every day.

To acquire high profit percent, we have to transfer money by International Transfer. This may take more days.

However, if we can perform an arbitrage round every month, then we can take 15%-20% percent profit every month.

This is also a good way to make money.

Thank you very much, we didn't notice this.

We will post verification documents today, at least getting Advanced Verification.

CryptoStocks site shows your verification level as "None", and this gets you nowhere.
I like the idea but unless you do provide certain provable ID documents to CryptoStocks and also to the public, the only people who may jump ahead to buy would be drunk or the newb fool. You should provide documents and full verification first!

Thank you for your advice.

You mean buy and sell at once on different exchanges, then transfer money.

In fact, this is not a secret for all of us. The point is to transfer money easily from one country to another.

So We can't agree with what you said  "If you don't know how arbitrage is done but you start a Fund".

We acted arbitrage process for many times.

However, as for you word, " This risk should not exist", It is correct, so We delete this risk.

Thank you for your advice again.

I think this is a good ideea, and i would invest in it, but the business plan is wrong.
 "(4) The price goes down fast, we may lose some money. "
This is not how arbitrage it's done. This risk should not exist. You don't have to wait for the funds to transfer between accounts. You must have funds available on bouth, or more exchanges and the secound you sel on one exchange you buy on another and you make a profit. Regardless on the price change, this should not affect you. And you must use the money so you do the arbitrage each day, transfer every day, not wait for the rounds.
You should substitute with:
 (4) The Bitcoin Arbitrage Fund disapears with all the investors money.
 or better make it risk number 1, because if you don't know how arbitrage is done but you start a Fund... this is really the only risk for the investors.

Updates:

(1) Bitcoin Forum time: November 12, 2013, 03:37:48 AM

The first dividend will be paid after 7 days, then we will start the first arbitraging process.

(2) Bitcoin Forum time: November 16, 2013, 04:50:48 AM

There will be the first dividend tomorrow.(After 24 hours from now)

(3) We observed the price differece between Chinese exchanges and abroad exchanges is getting small, it will make our fund more difficult to operate.

However, remember, don't sell any shares at price below 0.01 BTC, because if the fund is closed oneday, we will deliver all dividends and buy back all shares at price 0.01 BTC.

(4) Bitcoin Forum time: November 17, 2013, 04:54:51 AM

The first dividend 5% was paid, we began the first arbitrage process.
The first round,  All btc = 28.23 (All investment from shareowners)+ 40 (Investment from OP) - 1.416(the first dividend) = 66.814 BTC

The First Artraging Process:

>>>>>>>>November 17, 2013, 66.809 BTC rececied on Okcoin.com, 66.809 = 66.814  - 0.005 transfer fee of bitcoin network.

>>>>>>>>November 18, 2013,  66.809 BTC Sold on Okcoin.com, Total RMB= 3901 RMB * 66.809 = 260621.909 RMB

>>>>>>>>November 18, 2013, Withdraw from Okcoin.com to Tenpay ,Total RMB= 260621.909 * 0.995 = 259318.80 RMB

>>>>>>>>November 18, 2013, Tenpay transfer to bank account, Total RMB= 259318.80 - 200(transfer fee) = 259118.80 RMB

>>>>>>>>November 18, 2013,  Exchange to USD, Total USD = 259118.80 RMB/6.117 - 10 USD (Additaional fee) = 42350.44 USD

>>>>>>>>November 18, 2013,  Internet Wire Transfer to bitstamp.net 42330.44 =  42350.44 - 20 (Transfer fee)

>>>>>>>>November 21, 2013,  Received USD on bitstamp.net , the price was very high, we can't buy back orignal BTC amount, so we have to wait for a couple days to see whether there is a chance or not. 

(5) Bitcoin Forum time: November 17, 2013, 01:05:06 PM

We got Advanced verification from Cryptostocks just now.

Bitcoin Arbitrage Fund

https://cryptostocks.com/securities/66

Summary:

The purpose of this fund named Bitcoin Arbitrage Fund (BAF) is to arbitrage between several exchanges based on price difference of Bitcoin.

Business:

There are several BTC exchanges such as bitstamp.net, btc-e.com, btcchina.com, okcoin.com. We can observe that the price of Bitcoin is always different.

In the past two months, the prices of btcchina.com and okcoin.com were always lower than those of BitStamp.net's and Btc-e.com's. However, things changed within 15 days, the prices of Bitcoin of the latter are higher than the formers’.

The difference was always between 8% and 20%, So there is a good chance to arbitrage between these exchanges. As well known, China takes strict policy with foreign funds, so it is not easy for some of you to withdraw RMB to bank account in China, exchange RMB to USD, and transfer USD from China to the rest of the world.

However, as Shenzhen citizens in China, we have several bank accounts in Hong Kong. So it is easy for us to perform the whole arbitraging process. Of most important, this fund is operated by a full-time operator, so we have enough time to consider when to buy and when to sell.

Shares:

The fund will issue 20,000 shares at price 0.01 BTC, which is 200 BTC. The management will invest 40 BTC, which is 20% of all shares. So shares held publicly will be 160 BTC, which is 80% of all shares. The 20% shares held by management will not join the share exchange. All bitcoins included in the fund will take part in the arbitrage progress.

Assets, Dividends and Management Fees

There are no assess except shares, cash and bitcoins included in this fund.

Buy BTC from Btc-e.com, sell them on China exchanges, transfer money back to Btc-e.com and buy BTC again, we called these steps an arbitrage round. Each arbitrage round will take several days which is vary from seven days to fifth days. It depends on the time transferring USD from bank to Btc-e.com or bitstamp.net.

Dividends will be paid after each arbitrage round. 15% from all accrued dividends will be paid to management as management fees before being paid to shareholders. The rest 85% of all profit will be paid to all shareholders.

Transparency:

The fund seeks maximum transparency by fully disclosing all assets held in the fund at any time. Each round of arbitrage process will be disclosed to any shareholders. All dividends accrued and paid will be disclosed. All management fees will be disclosed.

Risk to shareholders :

There are some risks to shareholders, they are following:

(0) Price difference disappears. It will affect the price of shares.
(1) Exchanges closed suddenly, and we can’t take money back
(2) The coins held by exchanges were stolen, and we can’t take them back.
(3) Exchanges or banks delay our transfer requests.
(4) Other underlying risks, which we are not mentioned and we can’t control.

This fund does not hedge against any of these risks. Each shareholder must understand these risks before investing.

Fund Closure:

The fund's value relies on the price difference between exchanges. If the difference disappears, then management will close this fund giving 30 days notice. All assets in the fund including each share's value will be liquidated on the respective markets and paid to shareholders. Unpaid dividends will be paid to shareholders at the same time after 15% management fees.

[email protected]