It came as a result of this thread I believe: A risk/reward analysis of insured Pirate returns: PPT.X, YARR, GIPPT, Hashking
The thread gives a few clear examples.
I am proud to announce the possibility of...
A Pirate-Pass-Through paying MORE than 7% Weekly!
Here's how it works. Two investors get together, or are matched through a third-party. One is the low-risk seeker, and one wants huge returns. Here's an example:
Lender A wants low-risk returns. He has 300 BTC.
Lender B wants high-risk PPT returns. He has 195 BTC.
The two pool their money for a total of 495 BTC. They purchase 300 shares of YARR for 1.65 BTC each (yes, the market depth is there as of the time of this writing.) Every week, they get 18 BTC in dividends. They split it up in this way:
Lender A gets 3.375 BTC
Lender B gets 14.625 BTC
This means that their returns are:
Lender A: 3.375 / 300 = 1.125% weekly
Lender B: 14.625 / 195 = 7.5% weekly
If pirate defaults, Lender A gets the 300 BTC; Lender B gets nothing. Therefore, this scheme entitles one person to risk-free 1.125% weekly returns, and the other person to 7.5% weekly returns with the same risk as pirate-direct.
This is evidenced by my earlier analysis. At a price of 1.71 BTC, Lender A gets about 1% weekly and Lender B gets about 7% weekly.
There are at least 3 opportunities that this provides:
1. Get-together, as above
2. Just buy shares of YARR yourself and be both people
3. A third-party service which offers 1.1% and 7.1% returns, matches up depositors, covers the unmatched bits, and takes a cut.
A Pirate-Pass-Through paying MORE than 7% Weekly!
Here's how it works. Two investors get together, or are matched through a third-party. One is the low-risk seeker, and one wants huge returns. Here's an example:
Lender A wants low-risk returns. He has 300 BTC.
Lender B wants high-risk PPT returns. He has 195 BTC.
The two pool their money for a total of 495 BTC. They purchase 300 shares of YARR for 1.65 BTC each (yes, the market depth is there as of the time of this writing.) Every week, they get 18 BTC in dividends. They split it up in this way:
Lender A gets 3.375 BTC
Lender B gets 14.625 BTC
This means that their returns are:
Lender A: 3.375 / 300 = 1.125% weekly
Lender B: 14.625 / 195 = 7.5% weekly
If pirate defaults, Lender A gets the 300 BTC; Lender B gets nothing. Therefore, this scheme entitles one person to risk-free 1.125% weekly returns, and the other person to 7.5% weekly returns with the same risk as pirate-direct.
This is evidenced by my earlier analysis. At a price of 1.71 BTC, Lender A gets about 1% weekly and Lender B gets about 7% weekly.
There are at least 3 opportunities that this provides:
1. Get-together, as above
2. Just buy shares of YARR yourself and be both people
3. A third-party service which offers 1.1% and 7.1% returns, matches up depositors, covers the unmatched bits, and takes a cut.
There is a fourth option; This is how my new issue, Nyancat Financial is set up to work. NYAN.C will probably pay about 9-10% per week.
You can read more about Nyancat Financial here: https://bitcointalksearch.org/topic/rfc2-96415
p.s. I posted my idea first :p
FINAL VERSION: This will be sent to GLBSE in a few hours.
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NYANCAT FINANCIAL
I. Investment Hypothesis:
Nyancat Financial is a financial services company listing the GLBSE. We allow investors to make investment choices based on risk as well as interest rate, allowing you to take on as much (or as little) risk as you want.
Investment income from NYAN.A, NYAN.B, and NYAN.C is pooled. NYAN.A is paid 0.01 bitcoins per share. NYAN.B is paid 0.02 bitcoins per share, and the rest of the money is paid to NYAN.C.
The sector and risk profile is:
1. NYAN: equal exposure to A, B and C funds
2. NYAN.A: Mining, insured investments, and other extremely low risk securities.
3. NYAN.B: Proven bitcoin-only businesses which are not mining, and not pirate.
4. NYAN.C: Pirate, OBSI.HRPT, and other unproven, high risk strategies.
II. Operations of NYAN
Nyancat Financial is a bitcoin-only financial services company. We perform various financial services for our customers including bitcoin deposit accounts, bitcoin brokerage services, bitcoin securities, bitcoin trusts, and bitcoin loans. Our operations are collected into, and segregated by, the wholly owned bitcoin only bonds NYAN.A, NYAN.B and NYAN.C. Our operations in NYAN are simple and transparent. We are a bitcoin only company; we do not use leverage and we retain 100% backing of all customer deposits. By assigning and guaranteeing risk to the various securities in addition to interest rate, we allow investors to make decisions based on risk versus reward in a completely open and transparrent manner separate from the underlying securities backing the issues. If you do not see in NYAN.A, NYAN.B or NYAN.C a risk/reward profile that fits your investment strategy please contact us. We will custom-create an investment portfolio that matches your needs. We are capable of managing offline portfolios which do not expose themselves to company risk of specific institutions such as GLBSE, MtGOX, BTC-E, MPOE, Bitcoinia, and so forth.
III. Nyancat Financial Contract for NYAN (Parent Company)
1. Nyancat Financial ("NYAN") holds only NYAN.A, NYAN.B and NYAN.C, and does not hold any other stock or bond.
2. NYAN will act to balance it's ownership of NYAN.A, NYAN.B and NYAN.C by buying and selling shares.
3. NYAN will open custom accounts for customers based on a customer's desired risk and reward profile.
o Standard requirements are what interest rate the customer wants, how frequent payouts will be, and how much risk they want to take on.
4. Nyancat Financial's operations and balance sheets will be made fully transparent to the public and backed up by signed statements from our backers where appropriate.
5. Company Risk will be mitigated by installing a dead man's switch: If the operator becomes incapable of paying out dividends, someone else will step in to do it.
6. Company Risk will be mitigated by installing a default switch: if Nyancat Financial defaults on this contract, the institutions which we hold money with will be authorized to pay out the value of our holdings to shareholders on our behalf.
7. Nyancat financial pays weekly dividends, to be paid within 30 days of the end of any unpaid calendar week.
Nyancat Financial Contract for NYAN.A (Low-Risk/Insured Fund)
1. The Low-Risk/Insured Fund ("NYAN.A") profits solely from investment in, and ownership of, high quality mining securities, insured investment vehicles, and other extremely low risk securities.
2. Investments are chosen entirely based on their risk profile; we seek insured investments and very low risk investments only.
3. NYAN.A will pay 0.01 per week in dividends.
4. The value of NYAN.A shares is guaranteed by CPA and NYAN against capital loss via the reasonably timely maintenance of a bidwall at 0.99 bitcoins per fund unit.
5. The dividend interest rate is guaranteed by CPA. If NYAN is unable to pay a dividend of 0.01 on NYAN.A, CPA will pay it.
6. Holders of NYAN.A are guaranteed first claim to any holdings, bitcoins or other assets of NYAN.
7. Dividends are paid weekly, to be paid within 30 days of the end of any unpaid calendar week.
Nyancat Financial Contract for NYAN.B (Balanced Risk Fund)
1. The Balanced Risk Fund ("NYAN.B") profits solely from investment in, and ownership of, bitcoin businesses which are not mining operations and not exposed to "pirate".
2. Investments are chosen entirely based on sector; we seek to invest in the bitcoin community at large; but again, no mining, and no pirate.
3. NYAN.B will pay as dividend from the pool of A, B and C the lesser of 0.02 bitcoins per fund unit and the amount remaining after NYAN.A pays dividends.
4. Holders of NYAN.B are guaranteed second claim (after holders of NYAN.A) to any holdings, bitcoins or other assets of NYAN.
5. Dividends are paid weekly, to be paid within 30 days of the end of any unpaid calendar week.
Nyancat Financial Contract for NYAN.C (High Risk Fund)
1. The High-Risk Fund ("NYAN.C") profits solely from investment in, and ownership of, high-yield securities.
2. Investments are chosen entirely based on their interest rate without regard to the risk profile.
3. NYAN.C will be paid whatever isn't paid to NYAN.A and NYAN.B.
4. Holders of NYAN.C are guaranteed no rights or claim to any assets of NYAN, NYAN.A, or NYAN.B.
5. Dividends are paid weekly, to be paid within 30 days of the end of any unpaid calendar week.
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NYANCAT FINANCIAL
I. Investment Hypothesis:
Nyancat Financial is a financial services company listing the GLBSE. We allow investors to make investment choices based on risk as well as interest rate, allowing you to take on as much (or as little) risk as you want.
Investment income from NYAN.A, NYAN.B, and NYAN.C is pooled. NYAN.A is paid 0.01 bitcoins per share. NYAN.B is paid 0.02 bitcoins per share, and the rest of the money is paid to NYAN.C.
The sector and risk profile is:
1. NYAN: equal exposure to A, B and C funds
2. NYAN.A: Mining, insured investments, and other extremely low risk securities.
3. NYAN.B: Proven bitcoin-only businesses which are not mining, and not pirate.
4. NYAN.C: Pirate, OBSI.HRPT, and other unproven, high risk strategies.
II. Operations of NYAN
Nyancat Financial is a bitcoin-only financial services company. We perform various financial services for our customers including bitcoin deposit accounts, bitcoin brokerage services, bitcoin securities, bitcoin trusts, and bitcoin loans. Our operations are collected into, and segregated by, the wholly owned bitcoin only bonds NYAN.A, NYAN.B and NYAN.C. Our operations in NYAN are simple and transparent. We are a bitcoin only company; we do not use leverage and we retain 100% backing of all customer deposits. By assigning and guaranteeing risk to the various securities in addition to interest rate, we allow investors to make decisions based on risk versus reward in a completely open and transparrent manner separate from the underlying securities backing the issues. If you do not see in NYAN.A, NYAN.B or NYAN.C a risk/reward profile that fits your investment strategy please contact us. We will custom-create an investment portfolio that matches your needs. We are capable of managing offline portfolios which do not expose themselves to company risk of specific institutions such as GLBSE, MtGOX, BTC-E, MPOE, Bitcoinia, and so forth.
III. Nyancat Financial Contract for NYAN (Parent Company)
1. Nyancat Financial ("NYAN") holds only NYAN.A, NYAN.B and NYAN.C, and does not hold any other stock or bond.
2. NYAN will act to balance it's ownership of NYAN.A, NYAN.B and NYAN.C by buying and selling shares.
3. NYAN will open custom accounts for customers based on a customer's desired risk and reward profile.
o Standard requirements are what interest rate the customer wants, how frequent payouts will be, and how much risk they want to take on.
4. Nyancat Financial's operations and balance sheets will be made fully transparent to the public and backed up by signed statements from our backers where appropriate.
5. Company Risk will be mitigated by installing a dead man's switch: If the operator becomes incapable of paying out dividends, someone else will step in to do it.
6. Company Risk will be mitigated by installing a default switch: if Nyancat Financial defaults on this contract, the institutions which we hold money with will be authorized to pay out the value of our holdings to shareholders on our behalf.
7. Nyancat financial pays weekly dividends, to be paid within 30 days of the end of any unpaid calendar week.
Nyancat Financial Contract for NYAN.A (Low-Risk/Insured Fund)
1. The Low-Risk/Insured Fund ("NYAN.A") profits solely from investment in, and ownership of, high quality mining securities, insured investment vehicles, and other extremely low risk securities.
2. Investments are chosen entirely based on their risk profile; we seek insured investments and very low risk investments only.
3. NYAN.A will pay 0.01 per week in dividends.
4. The value of NYAN.A shares is guaranteed by CPA and NYAN against capital loss via the reasonably timely maintenance of a bidwall at 0.99 bitcoins per fund unit.
5. The dividend interest rate is guaranteed by CPA. If NYAN is unable to pay a dividend of 0.01 on NYAN.A, CPA will pay it.
6. Holders of NYAN.A are guaranteed first claim to any holdings, bitcoins or other assets of NYAN.
7. Dividends are paid weekly, to be paid within 30 days of the end of any unpaid calendar week.
Nyancat Financial Contract for NYAN.B (Balanced Risk Fund)
1. The Balanced Risk Fund ("NYAN.B") profits solely from investment in, and ownership of, bitcoin businesses which are not mining operations and not exposed to "pirate".
2. Investments are chosen entirely based on sector; we seek to invest in the bitcoin community at large; but again, no mining, and no pirate.
3. NYAN.B will pay as dividend from the pool of A, B and C the lesser of 0.02 bitcoins per fund unit and the amount remaining after NYAN.A pays dividends.
4. Holders of NYAN.B are guaranteed second claim (after holders of NYAN.A) to any holdings, bitcoins or other assets of NYAN.
5. Dividends are paid weekly, to be paid within 30 days of the end of any unpaid calendar week.
Nyancat Financial Contract for NYAN.C (High Risk Fund)
1. The High-Risk Fund ("NYAN.C") profits solely from investment in, and ownership of, high-yield securities.
2. Investments are chosen entirely based on their interest rate without regard to the risk profile.
3. NYAN.C will be paid whatever isn't paid to NYAN.A and NYAN.B.
4. Holders of NYAN.C are guaranteed no rights or claim to any assets of NYAN, NYAN.A, or NYAN.B.
5. Dividends are paid weekly, to be paid within 30 days of the end of any unpaid calendar week.