Topic: [GLBSE] BIB.PIRATE -- Bitcoin Investment Bank Pirate Bonds 4.75 % wkly from 20/8 (Read 12221 times)

Yeah. It's not delisted, so it will work as normal, minus active trading. I have reduced my exposure to GLBSE over this and the Goat delisting issue.

awesome. that's good to know.

Cool. Not sure how useful that may be. I'll think about this option, and may wish to convert one of the holdings over & bet on both horses. Not sure a payout is likely enough to justify the 1 btc expense

I've noticed that trading has been suspended. See this post for the closest that comes to an announcement: https://bitcointalksearch.org/topic/m.1218273 I believe I can still pay dividends in the event that funds are returned by pirateat40.

I have not been contacted by the SEC and am not a US resident or citizen.

I have no way to verify ownership of GLBSE securities, other than have shares transferred to me. I suggest you contact nefario and he may be able to provide a statement of holdings.

I'm not sure how useful it would be, but I could convert holdings to a private deposit if people transfer assets to my user account (brendio:BIB.PIRATE) and provide a GPG-signed statement of holding to clients to pass on to pirateat40 if they think it will help their cause. As I am unlikely to receive any material benefit from this action, and don't want to be inundated with 1000s of requests, I will charge a flat rate 1 BTC fee for this service.

Well...what's the news (and did you see goat's boat in cambodia? lol)

Have you been contacted by the SEC?

Are you a US resident or citizen?

Are you willing to take a list of bondholders to pirate (if bondholders wish)
-ofc, they pretty much have to be willing to share the info with you

Do you have any way to verify the ownership of shares with GLBSE, once the owners have reported them to you? i.e. will GLBSE certify a users' holdings? (MPEx is so much easier for this!)

I have a bunch of both FOO.PPPT and BIB.PIRATE - might as well make sure it's all squared up in case there's a miracle and pirate pays.

Thanks btharper for the update, and I think this pretty much sums up my approach. Any principal received shall be returned in full. Any interest shall be in the proportion 6.75/7.

For now, it's still a waiting game.

Greetings from Cambodia, by the way.

Goat and Nefario have spoken about this in the tygrr.bond-p thread and bond issuers (Goat in that case, Brendio in this case) do not have access to the full list of who owns what and Nefario is neither legally permitted (under UK law, where he's based) or willing to disclose this information. Legally speaking the thoughts (again from Goat's thread) are that the bond issuer on GLBSE is the only person who has contract with Pirate, and the only one who's information needs to be shared (and pirate of course already has all the information he should need).

As for the current state of things, so far as I can tell anyone can continue trading pirate's debt on the open market. I believe Pirate has every intention of returning something, the exact amount at this point is pure speculation (See above quote "Principal and interest payments are subject to review").

As for what Pirate returns (and if of course, there's a lot of uncertainty) I would expect Brendio to pay back what he receives from pirate (interest and possibly principle (since they'll probably be mixed somewhat) subject to his existing cut (as always per contract). For exact details you'll have to wait for him to chime in. What an unfortunate time to be busy But such is life

Is there already any solution for the forced buy back when pirate likes to pay out directly?
What if for example i do buy BIB.Pirate Fonds now?
Will i get the par value when pirate pays back?
Did you already send him a list?

I will be heading into the Black Forest tomorrow. I'm not sure whether I will have internet access or not. On the weekend, I will be staying with friends and should have access again, but I would also like to catch up with them and not be checking my bitcoin client every 5 minutes to see whether pirate has returned the funds, so there may be delays, depending on when it occurs.

At this stage, I think the forced buyback feature would be the best option, but would need to talk to Nefario about the finer details.

Yes, prorated interest received would also be paid.

Brendio.

Can you comment on your plans for this issue in the event that Pirate actually pays everyone back Brendio?
How would it proceed, with a bid wall, transfer to you, GLBSE's forced buyback feature, etc.
Would you return whatever Pirate pays you per bond with interest, share+interest-0.0025, etc?

Thanks

For those who have not heard, pirate has decreased the rates on deposits in BS&T and so accordingly, rates on BIB.PIRATE will be decreasing to 4.75% weekly from after next week's dividend payment.

Internet funktioniert gut so I was able to make the dividend payment in a timely fashion and process a withdrawal request.

Just a quick heads up that I will travelling tomorrow around the time pirate's payout usually comes. Hence, I will bring forward the cutoff time for wholesale deposits/redemptions to 8 am UTC. I should be able to access internet at a friend's place where I will be staying, but if that doesn't work out I may need to visit an internet cafe and payments could be expected on Tuesday. Just giving forewarning so there is no panic if I am out of contact.

Regards,
Brendio.

This week's dividends have been paid.

Dividends have now been sent.

Bueller?

Nothing yet.

so what's the news? has it gone through?

August 01, 2012, 12:21:42 AM EDIT:
Must have been one of these really long shifts... No offence but you could at least state whether you got something from the pirate.
Someone just sold for 1.0 BTC...

Update: I have got Internet working and am catching up on the block chain, but need to leave in about 20 minutes. I should be able to make payments tonight when I get back. Sorry everyone for any inconvenience.

I've arrived in Europe but am having issues getting the Internet to work on my computer. I am writing this from my phone. I'm not able to see whether pirate's payment has gone out.

I'm also severely jet-lagged so it is probably best that it waits until I am again able to think straight.

Hi all, just a quick note to let you know that over the next couple of days I will be travelling to Europe, so I may be a bit slow responding to PMs. I should be back on line in time for the next cut off and interest payment, but please take this into account if you wish to make a deposit so that you can get a deposit address in time.

The funds are on the way to GLBSE now. Five more confirmations needed. Sorry, I'm not as prompt as usual. I have a lot of other stuff to organise at the moment.

EDIT: Dividends have now been paid.

Any idea when this week's dividends will go out, Brendio?

This week's dividend has been paid.

I expect to be able to announce full details around the middle of the month, but my current plan is to establish a mechanism to exchange BIB.PIRATE bonds for BS&T Trust Sub-Accounts when they become available. Full term and conditions, including minimum balances and interest rates will be announced later, but, at this stage, I expect the higher interest-paying accounts to still earn 6.75 %.

Trust Sub-Accounts should give depositors more flexibility and prompt interest payments, while getting higher rates than BS&T Savings Accounts.

Community service announcement:

I notice that there are currently 162 BIB.PIRATE bonds offered at 1.03 BTC each (it's not me selling). I'd like to point out that taking into account the accumulated coupon, that is less than par value, so your running yield will be greater than 6.75 %. Grab yourself a bargain!

This week's dividend has been paid!

Funds are on their way to GLBSE for dividend. Waiting for 5 more confs.

No, the buyback function of GLBSE is optional. The buy-back clause was included in the contract because there is a low probably that I will live forever, and thus I _may_ need to discontinue operations _at some stage_. I included the July date to indicate that July would be the earliest that I am able to invoke this clause, but at this stage it is not my intention to do so, so long as the payments from pirate keep coming in. In case you haven't worked out, the buy back would actually cost me money (buy back clauses should have a bit of hurt for the issuer--beware of those that don't!), and thus it is an absolute last resort.

I saw it mentioned earlier, but I wanted to check.  Right now GLBSE is implying there WILL be a buyback on July 24th.  Do you know if this is going to be forced upon you by GLBSE even though you've stated you don't want to do that?  I know quite a few people (myself included) that were taking that buyback on the listing as a guaranteed event.  We'd prefer it doesn't happen of course .

Dividends paid.

Wholesale, by definition, is buying directly from me, the Issuer.

Read the contract clauses Issuance and Market Making to see how it works. Ask me if you have any further questions, otherwise you can fill in the form here (https://docs.google.com/spreadsheet/viewform?formkey=dFloaExSNU9IeF85MGZBQlQ5Sm5aYlE6MQ), or PM me to register your interest.

There is no minimum order for MMs, although it works out more economical for bulk orders.

How do we purchase these bonds wholesale, in bulk? Do we just get on GLBSE and wait for them to come on the market or do we purchase them directly from you to become market makers ourselves?

I guess you'll be better off posting a thread in the Trading Discussion. IMO, emails to GLBSE normally get ignored until it's posted publicly in the forums.

Dividend has been paid and bonds transferred to market makers.

Current issued bonds: 16080.

In other news, today is the one year anniversary of my bitcointalk account.

I sent an email to support. Never got a reply. Sadly, this is becoming common with my GLBSE emails.

Not sure how I missed subbing this thread.

Get that cleared up?

I got the dividends for all of my bonds, thanks! 

GLBSE is acting weird. Not nice when you're dealing with large sums.

I deposited the interest into GLBSE, but my balance showed slightly less than what I deposited, even though there were already funds in my account. I tried paying the dividend anyway, and my balance recovered the lost balance (i.e. it decreased considerably, but by less than the amount of the dividend). It looks like the dividend has gone out, and it shows up in my personal account, but is not listed on the asset page.

I'll raise it with Nefario later when I get a chance, but if someone could confirm they got a dividend and it was for 0.0675 that would be great.

Coupons (dividends) are paid as soon as practicable after pirate pays interest on the underlying, taking into account that I'm not always online, I'm generally sleeping when pirate pays, and I first need to transfer the interest into GLBSE and wait for confirmations. I have said in the FAAAAAQ that I will make payments within 48 hours. It will likely always be sooner than that, but I don't want to make a promise that other circumstances (in meatspace) may make me unable to keep.

I would really like to be able to set an ex-dividend time at the same time as when pirate pays, such that I can pay dividends to anyone who held bonds at that time, even if they subsequently sold them. Currently, GLBSE does not offer this functionality, so you need to hold the bond at the time the dividend is paid in order to receive the dividend. Best to check the dividend payment list on the asset page to ascertain whether the bond has been paid yet for that week.

I have requested Nefario add the ex-div functionality. If you think it is a good idea, please also let Nefario know. The more requests he gets, the more liley he is to implement it. I think it would be great not only for all the pirate pass-through bonds, but also the mining bonds where the dividend payments/coupons relate to an underlying trigger (e.g. difficulty change).

At what time will the dividend payment be done?

There will be 2700 new bonds will be issued after tomorrow's dividend payment.

The current breakdown of issued bonds can be found here.

Six hours left for wholesale bond purchases for this week. At this stage, 700 new bonds will be issued on the wholesale market.

Just a note that I'm away on an extended long weekend holiday, so I won't be online as regularly, but I will still be on around the cut-off time on Monday, and then again on Tuesday to issue the dividends.

No. I don't plan on it. There is an option in the contract for me to recall the bonds for Par Value + 50 basis points + a week's coupon. It's there as a safety measure for me in case a lot of people cash out and my balance drops below 2000 BTC, or anything else comes up such that I am unable to continue offering the bonds. I hope that this offering is around for a long time to come. But I realised that there could be a perverse incentive for me to issue a heap of bonds and sell them at a large premium and then buy them back straight away under the buy back clause and keep the premium, minus 50 basis points. So I set the buy back date at least 8 weeks in the future, to give investors assurance that this is not my intention. The buyback function of GLBSE is optional, and I don't currently intend to use it any time soon. You can be assured that a buy back won't occur before July 24, and hopefully won't for a while afterwards either, because it would be very expensive for me, since I own less than 2.5 % of the issued bonds.

However, those buying BIB.PIRATE bonds at a large premium, especially after July, should make themselves aware of this clause before investing.

Just a question: Are you recalling all bonds on July or?

The private program will continue to get the top tier rate so long as the total of private + BIB.PIRATE is enough for the top tier. It's all in my one account with pirate. I've included the private program as "reserved" so that the total issued equals my holding with BS&T.

For the 2363 Private Program bonds that currently exist, as they get withdrawn or converted, is there a minimum amount below which they no longer earn the top-tier interest rate?

Or will they continue to earn the top-tier interest regardless of their quantity (if they can be converted to BIB-PIRATE at any time to earn 6.75%, it would not make sense to hold them in the Private Program should their interest rate drop below that)?

To give an update on the number of GLBSE traded BIB.PIRATE securities, I have issued 13007 bonds. Of these, 10644 are in accounts other than that of the issuer. 2363 bonds remain in the account of the Issuer to represent to total sum invested in my private program.

Further bonds will be issued or recalled as bonds are issued to and redeemed from wholesale investors.

Breakdown of BIB.PIRATE Issued Bonds

GLBSE-traded	10644
Private Program	2363
Total BTC with BS&T	13007

The current breakdown can be found at: http://goo.gl/9pm2U

Trading in this asset is now open. Please note, however, that the weekly coupon cycle will not begin until after BS&T's next interest payment, expected in around 3 or 4 hours. (The interest earned on the deposits until then will be paid to the market makers/previous depositors.)

Interesting, I will convert my deposit to this asset.

I just edited the FAAAAAAQ to note that the GLBSE Transfer Fee does not apply prior to launch (since it is not levied on assets with less than 20 BTC trade volume).

Also, the next two people to register as market makers here will get a lifetime 50 % reduction on the Issuance and Redemption Fees.

Current private program depositors may convert their deposits into GLBSE Bonds at Par Value at any time, even after the bond launch. I'm waiving the 2 BTC Issuance Fee for at least the first month. After launch, depositors will need to pay the GLBSE Transfer Fee (0.2 %).

Existing private program depositors may add to their deposits even after the launch (for now at least).

Brendio, just to clarify:

Can current private program depositors convert their deposits into GLBSE Bonds are Par Value at any time (before or after the bond launch)? Or is there a time limit on this?

Also, does 'will close to new deposits' apply to existing private program depositors as well or will they be able to add to their deposits even after the launch?

I would be amenable to something like this. I don't really want to increase my personal exposure to pirate, so I will only market make if there is insufficient third party activity. An alternative to a time embargo period could be a minimum price below which I will not sell.

Technically, this is a contradiction, since brendio can offer bonds directly on GLBSE in his optional role as market maker. Brendio, you may want to clean up this language and/or be more specific. For example, is there a "runway" of time after the initial opening on GLBSE during which you will not assume the role of market maker? This would help market makers who want to make a quick profit be sure that you won't undersell them on GLBSE after taking their 2BTC fee.

Otherwise, this is an extremely cool initiative, and I'm looking forward to seeing where it goes!  

The 200 BTC minimum is only there until launch. After that, there's no minimum investment amount.


Anyone can become a market maker. They just need to PM me with a GLBSE username. It depends on how big someone's holding is as to whether they are better off redeeming with me directly or selling to someone on market.

Yes, Market Makers act as middlemen to sell on GLBSE. Their cut is the difference between what it costs them to get them from me and what price they can get on the open market. This vastly reduces the risk for me as Issuer and means I do not need to try to work out what price to offer the bonds for. The market takes cares of that. Note that I can take off my Issuer hat and put on a Market Maker hat as well if there is not sufficient liquidity from third parties. The redemption clause should also help put a floor under the price and make it easier for people to get their funds out without having to accept low-ball bids on market.

This post provides a bit of background on the idea, which I have expanded on.

As far as I understand it: He mostly (not only, he reserves the right to sell himself) will sell shares in bulk to people who invest at least 200 BTC + his fees + GLBSE fees. These can then keep the bonds or sell them on GLBSE, potentially at a premium.

As there are fees involved I guess the minimum price for these bonds to buy on the open market will be ~1.01 BTC, if not higher.

One of the extra risks is that brendio will only buy back from initial market makers, not everyone - so even if you buy 1k bonds FROM market makers, you (weirdly) cannot redeem them with brendio, even though he charges a fee etc.

Market makers add no real risk, as payments are done by brendio, not passed on by them.

I find this ambiguous. Are there some middlemen (Market Makers) who are going to do the selling on GLBSE? What would be their cut? What amount of additional risk this introduce?

The ticker symbol is to be announced. I'm waiting for contact from Nefario to fix an error stopping me from listing under my preferred ticker.

I've already submitted the contract and I'm not that keen to change it. A Par Value of 1 BTC per bond avoids a lot of decimal places (and associated fat finger errors) and, in my opinion, is more intuitive.

I would like this

What's the ticker symbol and when is the IPO?

Would it still be possible to split bonds 1:10 or 1:100 so each represents 0.1 or 0.01 BTC in pirate's accounts for liquidity? Currently all pass through offers are for 1 BTC a piece or above, which makes it hard to reinvest mining income for example or to compound manually.

Special Provisions for depositors of Brendio’s Pirate Pass Through Program (https://bitcointalksearch.org/topic/reopened-brendios-private-pirate-pass-through-675-weekly-82772)

Depositors in Brendio’s Pirate Pass Through program may choose to convert their deposits into GLBSE Bonds at Par Value. I will waive the Issuance Fees for the first month for depositors, and prior to listing there will be no GLBSE Transfer Fee.

Please note that depositors on the 7 % rate will revert to 6.75 % upon conversion, since Bonds are fungible and there is no means to differentiate original depositors.

Conversion is completely optional. Depositors may leave their funds in the private program, although the program will close to new deposits once the bond launches.

FAAAAAAQ (Frequently Asked, Actually Asked and Anticipated Questions)
 
What is BS&T?
 
Bitcoin Savings and Trust is a program operated by forum member pirateat40 that pays high rates of return on investment, for which it is difficult for the average investor to get a referral [https://bitcointalk.org/index.php?topic=50822.0]. Many have called the operation into question. [https://bitcointalk.org/index.php?topic=79294.0]
 
Do you offer any insurance?
 
No. If BTCST defaults and runs away with our money, we lose everything.
 
How often are coupons paid?
 
Coupons are to be paid weekly within 48 hours of BS&T making payment on the Underlying.
 
How many more bonds will you issue?
 
There is no limit to the number of bonds to be issued, so long as the cumulative Par Value of all outstanding bonds is backed by a deposit in BS&T. The number of bonds currently issued can be found here.

How are bonds issued?

The Issuer offers Bonds to wholesale investors, or Market Makers, who may then sell on the open market. New bonds must be paid for by Mondays 12 pm UTC and will be transferred to the wholesale investor after that week's dividend had been paid. (New bonds are not eligible for a dividend in the week in which they are issued.)
 
How much are you selling bonds for?

The Issuer will not directly sell bonds on GLBSE, but rather will deal on a wholesale basis with Market Makers. Market Makers determine prices for which it is profitable for them to operate.

What is Par Value?

The Par Value of the Bond represents the value of the funds held per Bond by the Issuer in the Underlying BS&T account. The initial Par Value shall be 1 BTC per Bond.

Will you buy back my bonds if I want out?
 
The Issuer will not buy bonds back directly, but there is a facility for Market Maker redemption, so you should always be able to find a willing buyer for your bonds, at a rate that takes into account their fees. If the Market Value of the bonds falls far below the Par Value, then there is an incentive for market makers to buy and redeem bonds, providing a floor under prices and ensuring liquidity.
 
 
How does one become a “Market Maker”?

Fill in the form here or PM the Issuer. You’ll need to provide a GLBSE username to which Bonds can be transferred, a bitcoin address for proceeds of redemption and forced withdrawals, and you will be supplied with a personalised deposit address.

Is there a minimum order for Market Makers?

There is no minimum order, but because the Issuance and Redemption Fees are fixed at 2 BTC, smaller orders will be less economical on a relative basis.

Will the Issuer trade on market?

Notwithstanding that the roles of Issuer and Market Maker are separate, the Issuer reserves the right to undertake Market Making activities to ensure liquidity.

Do the bonds expire?

The Bonds are issued perpetually. However, the Issuer reserves the right to call back outstanding Bonds at a price not less than a 50 basis point premium to the Par Value plus the upcoming Coupon.
Do you have any reputation?

The Issuer is listed under the “List of honest traders” (https://bitcointalksearch.org/topic/list-of-honest-traders-484) and is listed under the #bitcoin-otc “Web of Trust” (http://bitcoin-otc.com/viewratingdetail.php?nick=brendio&sign=ANY&type=RECV). The Bitcoin Investment Bank has previously issued the BIB.GOAT asset (not matured).

Are you GLBSE-verified^(TM)?
 
Yes.
 
Why is your phone number and address not verified?
 
I have had missed verification calls from Nefario on at least two occasions. Hopefully he can reach me soon. I've submitted my detail for address verification, but have not yet received any word from Nefario about it.
 
How old is your account with BS&T?
 
The Issuer has held an account with BS&T continually since 4 November 2011.

What happens if Pirate defaults?

If pirateat40 fails to pay an interest coupon or return funds to the Issuer, the Bonds will be impaired and funds in the Underlying, if any, will be returned to Bondholders in proportion to Par Value of the Bonds. That is, if pirate pays back only half of the invested funds, Bondholders would receive 50 % of the Par Value of the Bonds. If pirateat40 defaults completely, Bondholders will receive no return and shall have no recourse against the Issuer to make good on any losses of capital or interest.

What happens if Pirate returns funds invested (forced withdrawal)?

How this situation is handled depends on when the forced withdrawal occurs. If the forced withdrawal occurs during Bond Issuance to a Market Maker, the Market Maker will have their funds returned (less the Issuance Fee) and new bonds will not be issued to them.

If the forced withdrawal occurs for funds for which bonds have already been issued, the Issuer will make an announcement in this thread and issue a Special Dividend in proportion to the amount of the returned funds. Thereafter, the Par Value of the bonds will be reduced by the amount of the Special Dividend and the weekly coupon will be calculated on the basis of the reduced Par Value. Further issuances and Redemptions will also take place at the new Par Value of the Bond.

The Offering
 
The Bitcoin Investment Bank is offering GLBSE investors the opportunity to gain ongoing exposure to Bitcoin Savings & Trust (BS&T). Each bond represents an investment of 1 BTC in the BS&T and pays a weekly variable rate of 6.75 % of the Par Value of the bond. The investment is held in trust for the Bondholders. No insurance is offered or implied. The coupon rate will adjust should Pirate adjust his rates and shall be 25 basis points below that of a 2000 BTC investment in the underlying fund with BS&T.

The Bonds are perpetual, but may be recalled by the Issuer at a 50 basis point premium to Par Value plus the value of the next due Coupon.

The Bonds are offered and redeemed on a wholesale basis, letting the market take care of pricing.

Ticker: BIB.PIRATE

The Contract

-----BEGIN PGP SIGNED MESSAGE-----
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Bitcoin Investment Bank Pirate Bonds offer bondholders exposure to an underlying investment in funds held in pirateat40’s Bitcoin Savings & Trust (BS&T)

Par Value: Each bond has an initial Par Value of 1 BTC and is backed by an investment of 1 BTC held in trust by the Issuer with BS&T [https://bitcointalksearch.org/topic/bitcoin-savings-and-trust-home-closed-50822.0] as the Underlying.
 
Coupons: The Coupon on this bond is paid weekly. The Coupon Rate is equal to the 7-Day Interest Rate on Deposits applicable for a deposit of 2000 BTC in the Underlying, minus a fee to the Issuer of 25 basis points (0.25 %). The Coupon Rate is multiplied by the Par Value of the Bond to determine the Coupon. At the time of issue, the weekly coupon equates to 0.0675 BTC per Bond.
 
No Insurance Offered or Implied: This bond offering shares completely the counterparty risk of the underlying. Should BS&T fail to make interest payments or return capital to investors, the issuer of BPPT bonds will not be liable to reimburse losses and investors have no recourse against the Issuer.
 
Call Back: The Issuer reserves the right at any time to buy back of all outstanding bonds at a price equal to (1.005 times the Par Value) plus the full weekly Coupon.
 
Issuance and Market Making: Bonds will not be offered directly on GLBSE. Bonds are offered on a wholesale basis to Market Makers. A registered Market Maker may obtain Bonds from the Issuer by delivering to the Issuer a sum equal to the Par Value of the Bonds plus the GLBSE Transfer Fee plus the Issuance Fee. The Issuance Fee is set at 2 BTC fixed.
 
By way of example, an order by a Market Maker for 200 Bonds with a Par Value of 1 BTC and at the current GLBSE Transfer Fee rate of 20 basis points would require a sum of 202.4 BTC (200 x 1 BTC + 200 x 0.2 % + 2 BTC).
 
These funds must clear (6 confirmations) with the Issuer by the Cut-Off Time to be issued for that week. The Cut-Off Time is set as Mondays at 12 pm UTC. Bonds will be transferred to the GLBSE account of the Market Maker after the previous week's coupon has been paid (and carry no entitlement to that coupon). The Market Maker is free to sell the bonds on market of hold them in its own account.
 
The Issuer reserves the right to also act as a  Market Maker.
 
Redemption: A Market Maker may redeem bonds at any time by notifying the Issuer and transferring the bonds to be redeemed to the GLBSE account of the Issuer. At some time after the next Cut-Off Time, the Market Maker will receive bitcoins equal to the Par Value of the Bonds plus that week's coupon minus the Redemption Fee. The Redemption Fee is set at 2 BTC fixed.
 
By way of example, a Market Maker redeeming 200 Bonds with a Par Value of 1 BTC and a Coupon of 0.065 BTC would receive a sum of 211.5 BTC (200 x 1 BTC + 200 x 6.75 % - 2 BTC).
 
Forced withdrawal in the Underlying: The situation may arise in which the Issuer's holding in the Underlying is returned by a Forced Withdrawal [see https://bitcointalksearch.org/topic/m.605957]. Should the forced withdrawal relate solely to funds deposited during a Market Maker Issuance, the forcefully withdrawn funds will be returned to the Market Maker (less the Issuance Fee), and no new bonds will be issued relating to those funds.
 
Should the forced withdrawal relate to previously deposited funds, all bond holders shall immediately receive a Special Dividend payment according to the proportion of the fordec withdrawal to remaining funds and the Par Value of the Bonds will be reduced by the amount if this Special Dividend.
 
Risk: It is the Issuer’s opinion that this Bond Offering carries risk and investors are advised to familiarise themselves with such risks before investing.
 
Definitions and Capitalised Terms:
Issuer: The issuer is "brendio" trading as the "Bitcoin Investment Bank".
Par Value: The value in BTC held in trust by the Issuer in the Underlying.
The Underlying: The underlying investment in which trust funds are invested, namely, pirateat40’s Bitcoin Savings & Trust, as outlined in the bitcointalk.org thread here: https://bitcointalksearch.org/topic/bitcoin-savings-and-trust-home-closed-50822.
Pirate, pirateat40: The user known on bitcointalk.org and #bitcoin-otc as pirateat40, also referred to as simply “pirate”.
BS&T: BS&T refers to pirateat40’s investment scheme as outlined in the thread https://bitcointalksearch.org/topic/bitcoin-savings-and-trust-home-closed-50822, currently known as Bitcoin Saving & Trust, and future names under which it may trade.
7-Day Interest Rate on Deposits: The weekly interest rate offered by pirateat40 for a deposit of 2000 BTC, as detailed https://bitcointalksearch.org/topic/bitcoin-savings-and-trust-home-closed-50822.
Coupon Rate: The 7-Day Interest Rate on Deposits minus the Issuer management fee of 25 basis points.
Coupon: The Coupon is equal to the Par Value of the Bond multiplied by the Coupon Rate.
Market Maker: A wholesale investor in the Bond offering who has registered with the Issuer.
Cut-Off Time: The time by which orders need to be received from Market Makers for the Issuance or Redemption of bonds to be processed that week. The Cut-Off Time is set as Mondays at 12 pm UTC.
Issuance Fee: A fixed fee of 2 BTC payable to the Issuer for the issuance of any number of Bonds in a single transaction.
Redemption Fee: A fixed fee of 2 BTC payable to the Issuer for the redemption of any number of Bonds in a single transaction.
GLBSE Transfer Fee: The fee levied by GLBSE for the off-market transfer of assets between users of GLBSE. At time of issue, this fee is 20 basis points.
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