Lab Rat Data Processing, LLC (LabRatMining) Official Announcement - page 61.

dooferorg

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Quote from: Lab_Rat on April 25, 2014, 02:35:38 PM

Quote from: hamburgerhelper on April 25, 2014, 02:08:32 PM

LR -

1) Please tell us the original reason why the bonds were capped at 100 MH/s? We've seen a lot of hand waiving, but no concrete reason.

2) This conversion to capped bonds is not optional. What recourse through LRM do investors have who do not accept capped bonds in exchange for their original proportional bonds?

1: To the extent that we can answer this question without supplying legal advice we have already done so.

2: For those contract holders who wish it, they can select the new contract.

So, in order for the growing hashrate to be cleared legally it is declared as a 'bonus' for the purposes of this contract?

hamburgerhelper

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Quote from: Lab_Rat on April 25, 2014, 02:35:38 PM

Quote from: hamburgerhelper on April 25, 2014, 02:08:32 PM

LR -

2) This conversion to capped bonds is not optional. What recourse through LRM do investors have who do not accept capped bonds in exchange for their original proportional bonds?

2: For those contract holders who wish it, they can select the new contract.

This does not answer my question. I'm not asking about choosing one kind of capped bond over another. I'm asking what options I have as an investor if I do not accept ANY capped bond in exchange for my original, proportional bond?

rustyh17

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Would you submit LRM financials to a third party audit paid for by contract holders?

Lab_Rat

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Quote from: contactmike1 on April 25, 2014, 02:11:58 PM

Quote

Did the 3 to 1 split happen or not? I don't see anything in the new contract that makes a 3 to 1 split beneficial or necessary. When people start trading again, it will be very important to know if the number of outstanding bonds has tripled or not.

Edit:
Rewording since a good answer just appeared above. It sounds like we did incur the 3to1 split and the number of outstanding bonds has tripled.

This is correct. A new contract holdings list will be provided showing no more information than payout address and contracts held. This will confirm the 3:1 split.

Lab_Rat

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Quote from: hamburgerhelper on April 25, 2014, 02:08:32 PM

LR -

1) Please tell us the original reason why the bonds were capped at 100 MH/s? We've seen a lot of hand waiving, but no concrete reason.

2) This conversion to capped bonds is not optional. What recourse through LRM do investors have who do not accept capped bonds in exchange for their original proportional bonds?

1: To the extent that we can answer this question without supplying legal advice we have already done so.

2: For those contract holders who wish it, they can select the new contract.

dooferorg

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Quote from: Lab_Rat on April 25, 2014, 01:49:44 PM

Quote from: dooferorg on April 25, 2014, 01:16:40 PM

Quote from: mmmerlin on April 25, 2014, 01:12:25 PM

Regarding the contract, please state what is the case if we do not agree with the terms given.

Since LRM already took our BTC, it seems we are forced to accept. The 'All purchases are final' bit.

Well, I didn't know I was 'purchasing' a crappy amount of hashing power for 4BTC

I am not sure how people can legally be forced into accepting these 'new terms and conditions'.

I, for one, want my BTC back. I don't care that the dollar amount has changed. 1 BTC then is 1 BTC now.

Please do not answer questions with false information.

You are not forced to accept.

Your personal opinion.

You are not forced to accept.

Your personal opinion.

How is it 'false' that you have CHANGED the terms of the deal AFTER receiving our money for these 'mining bonds'?

Yes, it's my opinion that I'm posting on here. Goodness knows I don't have hardly any facts from you because of the way all this has transpired.

Money spent on LRM will never be recovered by investors. Is that my opinion? Yes, it is. Remains to be seen if that is going to be true or not.

contactmike1

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Quote from: Flashman on April 25, 2014, 02:23:01 PM

So to clarify, holders of original bonds are locked at 300Mh now? Then if "upgraded" to new contract they get 3 for 1 split at 100Mh each plus bonus which is depending on how much mine is costing to run and expand etc.

Yes this is confusing. Does that mean there will be two different bond types now? So when we trade bonds, we need to pay attention to what type of bond it is? We really need to land in a place where all bonds have the same practical valuation.

Lab_Rat

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Quote from: minter12345 on April 25, 2014, 02:08:21 PM

How would we move to the new contract if we wanted to?

All you have to do is tell us you agree to the new contract. I have verified email addresses for almost all contract-holders. Please tell us via the email address you have used in the past. If I do not have a verified email address of yours, grnbrg will explain that process in detail upon request.

hamburgerhelper

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Quote from: Lab_Rat on April 25, 2014, 02:30:31 PM

Quote from: Frankthechicken on April 25, 2014, 01:58:21 PM

Lab_Rat, could you please provide the original contract you are referring to for the original bonds for us to compare? Or a link to the original.

A digital copy of this contract is not available on this computer. This will be done in a timely manner.

BWAHAHAHAHA!

Did your lawyer come up with that one? Does s/he realize that we've been waiting for basic information for months now? That was rich.

smracer

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Quote from: Lab_Rat on April 25, 2014, 02:29:32 PM

PSUs are being recycled from previous hardware.

So you will be selling all your 65nm BFL equipment? Where? eBay?

Lab_Rat

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Quote from: Frankthechicken on April 25, 2014, 01:58:21 PM

Lab_Rat, could you please provide the original contract you are referring to for the original bonds for us to compare? Or a link to the original.

A digital copy of this contract is not available on this computer. This will be done in a timely manner.

Lab_Rat

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Quote from: smracer on April 25, 2014, 01:54:41 PM

Quote from: Lab_Rat on April 25, 2014, 01:46:01 PM

Quote from: smracer on April 25, 2014, 01:12:14 PM

How many Monarchs do you have on order?

How much electricity do you have at your warehouse? How many AMP service?

I can't answer about the Monarch's due to contractual obligations until that order has been fulfilled.

Combined between hosting locations there is a total of 2400A 3phase.

What PSU's are you using for the Monarchs? Have you bought the PSU's yet?

PSUs are being recycled from previous hardware.

smracer

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Quote from: Lab_Rat on April 25, 2014, 02:26:43 PM

Quote from: smracer on April 25, 2014, 01:50:33 PM

7a. The BitFury hardware I believe you're referring to has been in just over A month, not months. The hardware is still in the process of being put online as there have been multiple delays. These delays include but are not limited to, AC failure, transformer explosions, fiber cuts, etc.

How much BitFury equipment is waiting to go online? Why not move it to the other hosting facility if you are having problems at one facility?

40-45% is still to go online. At this point it is not logistically possible to move to another facility.

So we can assume you only have about 5TH more of Bitfury gear to go online? I thought there was 150TH of Bitfury.

Oh well, You must have 200+ Monarch's on order then.

Lab_Rat

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Quote from: smracer on April 25, 2014, 01:50:33 PM

7a. The BitFury hardware I believe you're referring to has been in just over A month, not months. The hardware is still in the process of being put online as there have been multiple delays. These delays include but are not limited to, AC failure, transformer explosions, fiber cuts, etc.

How much BitFury equipment is waiting to go online? Why not move it to the other hosting facility if you are having problems at one facility?

40-45% is still to go online. At this point it is not logistically possible to move to another facility.

Flashman

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Activity: 518

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Hodl!

So to clarify, holders of original bonds are locked at 300Mh now? Then if "upgraded" to new contract they get 3 for 1 split at 100Mh each plus bonus which is depending on how much mine is costing to run and expand etc.

grnbrg

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Official LRM shill

Quote from: Lab_Rat on April 25, 2014, 02:16:54 PM

Quote from: DemocraticRepublicOfDave on April 25, 2014, 01:34:12 PM

Q2) Given that we have just received the contract, I would really like to digest it for 24 hours as I may come up with follow up questions. Would you consider scheduling another Q&A session with lawyer present later next week?

Q2: There will be time allotted for all contract holders to decide what they chose to do. I believe this time will be 60 days from today.

grnbrg.

Lab_Rat

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Quote from: DemocraticRepublicOfDave on April 25, 2014, 01:34:12 PM

Hi LabRat,

Ok have just printed off and skim read the contract...

Two initial questions come to mind:

Quote

All investments are at the customer’s sole risk. You should not purchase contracts if
you do not understand the terms and conditions. By purchasing a contract you are
acknowledging that you understand the investment, accept the risks inherent in any
investments, and specifically the risks of this investment.

Q1) Given that I am already a contract holder prior to these terms and conditions. How could I have understood and accepted the terms and conditions prior to purchase.

Basically if I refuse to accept these terms and conditions what options are you offering me?

Q2) Given that we have just received the contract, I would really like to digest it for 24 hours as I may come up with follow up questions. Would you consider scheduling another Q&A session with lawyer present later next week?

Cheers

Dave

That term and condition that you quote was in the first contract (original contract) and is fairly standard language found in most contracts.

Q1: The offer is simple, continue under your current contract with no obligation to change, or change to the new contract without cost. We are offering you the option to select at no cost and no obligation in either direction. We will continue to meet our obligations under your current contract.

Q2: There will be time allotted for all contract holders to decide what they chose to do. I believe this time will be 60 days from today.

mboehler

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Activity: 68

Merit: 10

LR -

Would you be willing to provide an update once per week as to the state of Lab Rat Mining?

Specifically, we'd like to know:

Amount of Hashrate on-hand.
Amount of Hashrate ordered.
Expected arrival date of hashrate on-order.
Bitcoins mined this week.
Bitcoins paid out this week.
Amount paid per contract.
Number of contracts in existence.
Any other pertinent information.

Thank you.

EDIT: Corrected typos.

contactmike1

sr. member

Activity: 672

Merit: 251

Quote

Did the 3 to 1 split happen or not? I don't see anything in the new contract that makes a 3 to 1 split beneficial or necessary. When people start trading again, it will be very important to know if the number of outstanding bonds has tripled or not.

Edit:
Rewording since a good answer just appeared above. It sounds like we did incur the 3to1 split and the number of outstanding bonds has tripled.

Lab_Rat

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Quote from: rustyh17 on April 25, 2014, 01:33:34 PM

LRM,

This contract appears only to address the 100MH/s contracts being issued from here forward.

Please tell us how you intend to migrate existing contracts into this contract version. This is a
very clear change in your companies' growth and dividend philosophy. There must be some sort
of grand plan in place to migrate existing contracts to keep your investors as whole as possible
given their initial investments.

Please explain.

Thanks,

Rustyh17

Thank you for the good question.

We far exceeded the hashrate promised on the initial contracts sold. We only promised and estimated 100MH/s and are currently paying out over 300MH/s. For legal reasons we believe there are issues with continued varying hashrate per contract. We have locked it in at the then current rate of 300MH/s, which is 3 times what was ever promised. We wanted to keep growing as you and all of our other contract holders want us to do. Our solution to the growth issue was to offer a new contract for sale that met the current individual contract hashrate of 100MH/s and offered the ability to make special distributions under the new contracts funds permitting. This is not a variable contract, but does offer the opportunity for additional payouts over the 100MH/s while providing funds for growth. Long term sustainability of both LRM and our ability to continue long term payouts to our contract-holders is our paramount goal. The actions we have taken are to meet those long term goals.

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