Topic: [Havelock] Bitcoin Difficulty Derivative (BDD) - page 82. (Read 290235 times)

Period 1 End Report


EXCH Sold                   695
Price per EXCH             0.24310363
Gross Sales of EXCH      168.95702285
Less Fees                    0.67582768
Less Dividends              2.40695700
Net Balance                 165.87423817

End of Period 1 NAV/U   0.23866796

New Difficulty             2621404453
New Daily Dividend      0.00095923
New Reserve              0.19184600

NAV/U Less New Reserve = 0.23866796 - 0.19184600= 0.04682196

SELL Dividend                 0.04682196

You'll notice that I calculate the new Dividend to eight digits and multiply that times 200 Days to get the new Reserve. Those of you that did your own calculations may come up with a slightly different number if you chose not to round or to round elsewhere.

New EXCH Sales Price          0.19376446


EDIT: MINE dividend has paid, but SELL has yet to go out. Havelock stopped the SELL dividend payment as they though that that was going to be the amount paid daily to SELL (SELL doesn't get daily dividends; it only gets dividends if there is excess capital on hand due to an increase in the Difficulty).

So, Dividends are pending for SELL, they will be paid at 1PM unless they manually process sooner. At that time I will reinstate the EXCH ask order as well at the new price. Thanks to everyone for their patience.

Just wanted to be clear that the NAV/U reported yesterday was post dividends, so the difference between yesterday's NAV/U and today's (before both SELL and MINE dividends) will only be affected by new sales of EXCH. I'm working up the report for today now, but I will take down the EXCH ask at 1130AM ET to generate the final report and schedule the dividends.

Important Note

Some of you may not have traded in DMS, so you may be unfamiliar with how the value of these securities changes when SELL dividends are paid. Since the dividends paid to SELL are excess capital, the value of SELL drops by exactly that amount.

The market has settled somewhat on a stable value for SELL, and the value is always dependent on what the market thinks, but this value is decreased as soon as those dividends are paid to SELL.

For this reason, DO NOT leave bids up on SELL. I don't have a function to clear the order books, so those with bids left up will be at the mercy of the market.

EDIT: I also wanted to add that the New NAV/U is calculated, the SELL dividend is then calculated, and finally the new Period 2 Day 1 Dividend is paid. The New Period's first Dividend is not factored into the New NAV/U, as it is the first dividend of the new 200 Day Reserve.

The increase (or rather the slowing of the decrease) of the funds NAV/U due to new sales of EXCH has been understated earlier. The price for EXCH is fixed at the start of a difficulty-period, but the NAV/U slowly drops as MINE dividends are paid out. This means that the premium with respect to NAV/U that buyers of EXCH pay slowly grows during a period. 10 days after a difficulty adjustment, this premium will be about 6% (1% added by design, 5% through decreased NAV/U from dividends).

A higher premium on EXCH sales benefits holders of SELL. Holders of MINE are not affected either way. New buyers of EXCH will obviously pay a little bit more.

Thankyou both for the clarification, thats going to be alot better than expected

The fund IPOed at 210 days of MINE dividend, so this calculation is not accurate.

In the last report, the funds NAV/U was 0.23823015. After that, another dividend was paid last night, reducing the NAV/U to 0.23708398. 200 days of dividends at the new difficulty is 0.191849. So if the SELL dividend is paid before the next MINE dividend, it will be 0.0452348. If it is paid after the next MINE dividend, it will be 0.0442756.

Of course, the NAV/U may be slightly higher due to new sales of EXCH as there are now 662 units outstanding compared to 617 in the last report.

Only 5 days of mining dividends were paid out and ipo was based off 210 days now adjusted to 200.

You need to remove the % in fees that twentyseventy is taking & daily divs already paid

0.00114617 *200 = 0.229234
new rate is
0.0009592 *200 = 0.19184

Remaining is 0.0305 minus already paid divs gives 0.0248 ish

I calculated 0.0436

Hey Hey, a nice 19.49% difficulty rise should make a dividend for sell of around 0.02

Period 1, Day 5 Report

Total Units: 617

Balance Post Divs: 146.98800326

NAV/U: 0.23823015


In the future, I will be taking down the ask for B.EXCH around 11:45 - this prevents any new EXCH being purchased in the few minutes before divs are issued. I did have a user purchase one the minute before Dividends went out, which I'm sorting out now.

It looks as if the Difficulty will change sometime this evening, so SELL should be due for its first dividend tomorrow!

You're correct on the first count; it is no longer possible to simply hold EXCH shares. This determination was made due to Havelock's system; I'll be updating the contract this morning with this change and Rannasha's from yesterday.


I've been trying to shy away from doing a daily report in the case that I'm away from my computer at the time that dividends need to be paid (can still do it on my cell phone). But I am willing to post the number of outstanding units and NAV/U each day since that's easily calculable for me. Normally this should come around the time that dividends are paid, but if I'm not able to do that for some reason I will post it later that evening.

A full report will also be provided at the beginning of each Period (after each Difficulty change); I definitely want users to be able to have as much information as they need to make an informed decision.

Also, as Rannasha said, you can see the total number of outstanding units on either the SELL or MINE description page. If there outstanding units of EXCH, those count towards the total as well, I just haven't exchanged them for a BDD pair yet.

EDIT: Contract has been updated here in the OP. I'll be going over the entire contract again tonight, post any updates here, and will post a revised version on Havelock's reports page. I'm only editing for clarity due to the changes with not being able to hold EXCH.

The # of outstanding units can be found on the Havelock fund-overview:
https://www.havelockinvestments.com/funds.php

Is it possible to publish following stats on a daily basis.

• NAV/U
• number of units (BDD.MINE/BDD.SELL, BDD.EXCHANGE)

This helps to make the investment more transparent for investors. Thanks!

How?
Either you automatically exchange them via buyback, or you allow users to hold it... I'm not sure how it would be possible to do both...

Small typo.

Haha nope, at the moment it is manual. I'm online for most of the day and a lot of the evening as well and I'm constantly watching for new sales so that I can push them out to users. I'm normally sleeping between 12AM and 7AM Eastern Time, so you can reasonably expect that I won't be doing transfers during that time (unless it's the weekend, perhaps).

Hopefully sometime in the near future Havelock will be able to auto-exchange EXCH to a BDD Pair when someone purchases it. Until then, it's just me 

Thanks for the quick reply.
And holy shit, you are really quick with the B.EXCH to B.MINE and B.SELL conversion.
I bought on three different times, and you changed them in minutes. Or does it work automatically?

Thanks for answering, Rannasha. Yes, buyers of EXCH at this time DO need to take into account that that 'buffer' of 10 days of dividends will be paid out to SELL holders, unless there's a massive difficulty drop in the next day or so.

The extra 10 days of MINE-dividends serve as a bit of padding in case the difficulty would go down in the first time period (it isn't, it turns out). They are being paid out to holders of SELL and EXCH at the next difficulty-jump, when the size of the fund is reduced back down to 200 days of dividends.

Yes, the price will be set at 202 times the daily MINE dividend after the change. That covers 200 days of dividend at current rates and the 1% fee.

Can you help me with one thing I didn't understand so far.

The B.EXCH costs 210 Days of dividents +1%.
What happens with the extra 10 dividents? When will they be payed out?
Is the security now 210 dividents big, or do they exist as seperate entity?

And another question:
Will the price of the B.EXCH change with every difficulty change?

Dividends will be paid a bit late today, probably at 1PM ET (unless we get a few confirms in the next 15 minutes).

The deposit is pending from EXCH; I've had to do an on-chain withdrawal from EXCH to MINE, in the future I'll be able to request that Havelock does this on their end to eliminate any issues with BTC addresses, etc. They already have to approve withdrawals in any case.

I've also transferred over a larger portion of BTC this time so that I can schedule dividends in advance to be paid at Noon each day.

EDIT: Huzzah for some quick confirmations. Dividends will be paid at 12PM; again, this shouldn't be an issue in the future.