The last one:
You: Sorry for the delay
Jincey Firefly: ok
OmegaX Zapata: Trying to tie your tie, Nicholas?
You: SL kept me waiting on the login queue for way too long
OmegaX Zapata: Same here Nicholas
You: Okay, this is the second meeting we hold, and it relates specifically to our operations on the 3rd week of January, from the 16th to the 22nd
You: I was unable to have the accounting ready for today, relating to income and expenses, but from next week on they should be present.
OmegaX Zapata: No secretary?
Jincey Firefly: /lol
You: However, we have made the balance sheet, and you can see the changes in the different areas from that
You: Nope, no secretary
OmegaX Zapata: What does the asterisk next to the Texas Hold'em Lounge figure represent?
You: Our cash reserves were unusually high last week, because we took a large number of new investors just before the week ended.
You: The Texas Hold'em Lounge figure represents an estimated value of our business assets.
OmegaX Zapata: Ah
You: Which would be, specifically, a full rake Fairplay Table.
You: Retailing for 50k.
Walker Spaight: Do you have resale permissions on it, Nick?
You: We decreased the estimated value from 30k to 20k due to, among other things, a severe drop in poker games held at our table, due in part to the move to a new building.
You: Yes I believe I do have resale rights on the table.
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You: Very well, it has made less than L$200 in profits this week.
You: Loans were also slow, as there were absolutely no requests.
OmegaX Zapata: Oh, do give us information on how the loan process works exactly, when you're done
You: All these numbers relate to the start of sunday to the beginning of saturday
You: I will.
You: The private Currency Exchange Operation turned sizable profits this week, compensating for the slowness on the other sectors.
OmegaX Zapata: Explain that too =)
You: The currency exchange operation is not something we are sharing too much information about. It is essentially a gold exchanging operation which is completely separate from Second Life.
Walker Spaight: Do you have a position in currencies or fuingibles other than gold, Nick?
You: Yes.
Walker Spaight: Can you say which?
You: the dollar.
OmegaX Zapata: So you're using our money to buy gold?
OmegaX Zapata: And you can't tell us about that? =P
You: We are talking to a GOM trader on the possibility of creating a partnership for trading some of our reserve funds.
You: I can't give exact details, no.
Walker Spaight: the dollar against what?
You: Or rather, I technically can, but preffer not to at this time.
You: Excuse me?
Walker Spaight: you said you had a posisiont int he dollar
Walker Spaight: I was just wondering if you could say against what other currency/fungible
You: It is not a trading position, not in the way you are thinking about.
Walker Spaight: hmmm
Nickiam Solvang: nicholas, do you have a presentation or is this simply Q&A?
You: I'm trying to give a presentation and answer questions.
You: So where was I...
Walker Spaight: poker table
OmegaX Zapata: Currency exchange ops
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You: Yes, we will try to create more business on the poker table, but our best dealer is out of town and the others uninterested, so that might be difficult this week.
You: The loan process currently works in one way only
You: Unsecured personal loans.
You: They are limited to 5k per person at any time, and are given to people with a reasonably old and well rated profile.
OmegaX Zapata: What's the interest rate?
You: The first time a person approaches us, if their loan is approved, we charge 50% for the first day, and 25% for every additional day, not compounded.
Jincey Firefly: now that ratings seem to have stopped, how will you qualify newer applicants?
Walker Spaight: wow
OmegaX Zapata: Jeebus
OmegaX Zapata: And we only get 1%/week off that?
You: The second time the loans are made, the rate drops to 20%, then 10% for aditional days
You: And the third time the loans are made, the rate drops to a standard 5% a day.
Walker Spaight: so these are designed to be really short-term loans
You: There is a significant risk premium there
Jincey Firefly: yes
Kingey Oz: oops.
OmegaX Zapata: Is this high rate due to low volume of loan requests, or just risk?
You: The personal loans are designed to be one week loans, tops, with payment being made at most in two weeks
You: Both.
OmegaX Zapata: If you had more loan requests, could you foresee the interest going on, and/or the payback duration increasing?
You: We did make one loan this week, as in, not the week which the presentation covers, for L$350. It is still pending.
You: We will adjust the rate once we have gathered enough data to guess reliability the true risk of making personal loans.
Jincey Firefly: now that ratings seem to have stopped, how will you qualify newer applicants?
You: Land ownership always help.
You: Ratings will simply become more valuable from now on, so a person who is from 2004 and has 50 in ratings might be less qualified than a person registered in 2005 with 30 positive ratings
Kingey Oz: Mind if I ask a question? Sorry I'm late.
You: Not at all.
Kingey Oz: If you're not loaning out much money at all, what are you doing with the money you're paying interest on? And is 1% per week a realistic figure to be paying out?
You: The currency exchange operation is currently our most profitable enterprise. The 1% rate is realistic for now, keeping in mind there is always some risk involved in any venture. We do not antecipate lowering the rate until we reach 500k in deposits or fa
You: ce a severe drop in profitability
Kingey Oz: I understand, thanks.
You: does that answer your question?
You: ok
Royal Charlton: you'd lower the rates subsequent to a severe drop in profitability? not quite sure I understand the timing of how that would work...
OmegaX Zapata: It seems as though the bank itself is covered for risk, but not the investors as much
You: If the profits start becoming so low that we have to pay investors purely from the reserve cash, we will lower the rates to adjust for that fact. Is that clear?
Walker Spaight: don't you risk losing depositors that way?
Royal Charlton: that's clear, you'll cut the payment if you can't make money, is what you're saying?
You: Yes that is what I'm saying
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You: It is better to lose depositors than to slowly destroy our capital.
You: As to the risk for investors
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Royal Charlton: As a consumer I'd personally value a consistent payout over a fluctuating one.
You: There isn't a whole lot I can do about that. The 1% rate is designed to be high enough to sort of compensate, without breaking the bank in the process, and you have proof of the bank's terms on the no-modify notecard you get from the atm's
You: but other than that, only honesty from me helps. Which is what I try to do.
OmegaX Zapata: Have you given any thoughts to depositing our weekly interest to our accounts, so it compounds?
You: The 1% rate is likely to be consistent for some time. A drop in rates is something that shouldn't happen too often.
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Kingey Oz: Is that a guarantee or a guess?
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You: No, I do not belive that is necessary.
Sydney Jacobs: omega, you can deposite your interest
OmegaX Zapata: Yes, I know I can reinvest
You: The rates will not fluctuate too much, that is a guarantee. That they will stay the same for a while is an educated guess.
Jincey Firefly: Are you doing anything to attract people in need of loans? advertising? or is it all word of mouth?
Walker Spaight: how large do you envision the fluctuations? 10bp, 25bp?
Kingey Oz: I think the Second Life Herald ad was well placed
Jincey Firefly: um, i haven't seen the ad yet, thx Kingey
You: We are trying to boost our Popular Places ranking by supporting events hosted here, as well as hosting our own. Which is why we moved everything under one roof.
Kingey Oz: secondlifeherald.com/blog
Kingey Oz: sure
You: That is the primary effort to attract new investors/customers
Jincey Firefly: yes, i read it, but not often
You: We are not actively looking for other ways to attract people, but will consider them as we go.
Jincey Firefly: ok, thanks
Sydney Jacobs: Nicholas, i haven't seen anything in the forums? are you considering posting a thread there
You: The transcript of this meeting will be posted there.
Sydney Jacobs: kewl
OmegaX Zapata: The forums are where I heard about Ginko Tec
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Sydney Jacobs: me too, but not from nicholas
You: Yes, that seems to be the case for many of the investors
You: from who?
Sydney Jacobs: eugine?
You: Ah...
Sydney Jacobs: i didn't seem like a formal post to me
OmegaX Zapata: I would also happily accept a royalty fee for placing an advertising sign for Ginko Tec on the properties that I buy and sell =)
Sydney Jacobs: just a look what i found thing
Kingey Oz: I think the best idea, at 1% rates, would be to take it slow
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You: Eugene is, I believe, a well intentioned and enthusiastic person interested in helping the bank, but is not an employee or official spokesperson.
Walker Spaight: Eugenee who?
You: Are you proposing a deal OmegaX? If so may we talk personally once the meeting is over?
OmegaX Zapata: Certainly
You: Please explain what you mean Kingey.
Kingey Oz: oops, sorry.
Kingey Oz: What I mean by what?
You: By taking it slow at 1% rates
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Shaun Altman: Hey
You: hey there
Shaun Altman: wow this is nice
Kingey Oz: oh. well, i don't know much about this currency exchange you speak of, but i'm assuming that if you took in too much you wouldn't be able to pay it off. but, like i said, i don't know about the scale of this currency operation.
You: It can be scaled reasonably well. Above one million lindens it becomes increasingly more difficult to support the 1% rate, but we can possibly mantain it for 2 million lindens without taking on excessive risk.
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Kingey Oz: 1 mil L$? Isn't that a little ambitious?
Sydney Jacobs: lol
You: In a week or two, we hope to open an alt account to handle the bank's finances in a more professional way, separate from my SL account.
You: A businessman without ambition is as good as a camel without fat.
Jincey Firefly: that's a good idea
Jincey Firefly: lol
You: We are not claiming to be able to reach those levels, though we certainly hope to, we simply claim the rates can be maintained even with that kind of money.
Kingey Oz: Could you explain this currency exchange?
You: I preffer not to get into details on that. We are treating details as confidential information.
You: That may change in the future, but for now it is not open to the public.
OmegaX Zapata: Currency exchange = selling our L$ on GOM to fuel his raging cocaine habit =)
Jincey Firefly: snicker
You: Okay, that is being taken from the transcripts!
Kingey Oz: Heh.
Walker Spaight: lol
OmegaX Zapata: Lol
Jincey Firefly: lol
Kingey Oz: To tell you the truth, I feel extremely uneasy (and I'm not alone) in investing in something when I have know idea where the money is going, especially in an anonymous virtual world.
Kingey Oz: no idea*
You: I understand that concern, and will do my best to find a way to correct that situation. The confidential nature of the operation however, stays, at the moment.
You: Which is why we have been looking for in-world opportunities.
Walker Spaight: are oyu hoping to transfer those funds out of the currency operation and
Walker Spaight: into an in-world investment?
OmegaX Zapata: On a related note, Kingey Oz, Private Investigaor, for hire.
You: If we find a worthwhile one, yes.
Kingey Oz:
OmegaX Zapata: +t
Nickiam Solvang: nicholas, is there anything we can do to help? are you looking for board members?
You: I hadn't thought about that before, but it's an idea.
Sydney Jacobs: nicholas i too, am willing to support where i can
You: One thing you can do, is present me with any opportunities you might know of, that can pay over 1% a week.
You: We can talk latter on the possibility of board members, but that is not a discussion I would like to have here.
You: sorry for the spelling.
Walker Spaight: np
Kingey Oz: If you stay confidential, you won't be able to pay 1%, because we'll pull out.
Sydney Jacobs: you might, i don't think everyone will kingey
You: If you take one look at the balance sheets, you will see the following
You: There are assets which the bank owns, and there are liabilities, deposits made by investors to be exact.
You: The deposits allow us to make more money, but they are liabilities which, as long as our networth remains positive, can be paid back entirely and still keep a profit for the bank
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You: That being said
Sydney Jacobs: nicholas, after your done on this topic, im wondering have you had any new loans this week
You: I do not believe most members will leave because of the confidential nature of one of our operations
You: We had no loan requests for the 3rd week of January. We have one loan given for the 4th week of January, so far.
Kingey Oz: What are the loan rates?
Walker Spaight: you missed them earlier Kingey
Kingey Oz: ...
You: We had an inquiry regarding a mortgage type loan, but the person gave up
Sydney Jacobs: nicholas, what does the * mean near the texas holdem numbers
You: It means it is an estimate of the market value of the business.
Sydney Jacobs: ok
Shaun Altman: You're doing loans now?
You: We have always done loans.
Shaun Altman: Oh
Shaun Altman: and mortgages?
You: None yet.
Walker Spaight: what are the mortgage rates?
Shaun Altman: very high no doubt
You: The rates go from 50% to 5% per day, depending on a number of factors.
Shaun Altman: gotta pay tier
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You: Mortgage rates are about 5% a week
Walker Spaight: oh does the bank pay the tier?
Shaun Altman: I dunno
You: No.
OmegaX Zapata: I have some mortgage ideas to throw at you later, perhaps
Sephiroth Raven: what are the warranties that u give to investors?
Kingey Oz: How can you guarantee payment?
You: That is a separate fee.
Walker Spaight: he can't that's why the rates are so high
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You: You can find a general one on the terms of the ATM's notecard.
Sydney Jacobs: will these numbers be displayed all week?
You: Nobody in the world can guarantee payment.
Walker Spaight: What day this week did you makje that loan, Nicholas?
Kingey Oz: WIth a little elbow grease...
You: Every week, yes. I hope to be able to show income and expenses as well from next week on
You: Today
Walker Spaight: thank you
You: The loan was for 350, at 50%-25% rates.
Kingey Oz: And have all loans thus far been repayed?
Kingey Oz: repaid*
You: Thus far, all loans have been repaid. But given the low volume, that isn't saying much.
You: Which is why we are not lowering rates yet.
You: Silence...
You: Let me see if I missed something.
Walker Spaight: Does the interest on deposits pay out dialy?
You: They are paid weekly
You: every sunday to be exact
You: Basically once I'm done with the meeting, they will be paid.
OmegaX Zapata: Think we could get a general idea of the average deposit size?
Nickiam Solvang: prorated?
Kingey Oz: And how much will that be?
You: The interest paid is 1% a week
You: the average deposit size...
You: We ahve about 20-25 people invested
You: the majority of deposits are from four of those people
Sydney Jacobs: =)
You: The -vast- majority of deposits are from four people
OmegaX Zapata: Ah, ok
You: So any average I give you will be sort of misleading. Still, you can calculate an average from the numbers made public.
Nickiam Solvang: how liquid are the deposits?
Sydney Jacobs: liquid?
Sephiroth Raven: sorry about the stupid question, but where can i find an atm machine?
OmegaX Zapata: Wet
Jincey Firefly: how easily converted to cash
Sydney Jacobs: lol
Kingey Oz: behind you to the left
Jincey Firefly: =liquid
Sydney Jacobs: ok
You: Withdraws bellow 10k can be safely paid within 24 hours, sooner depending on when they are requested related to my sleeping hours
You: All withdraws are personally approved by me.
Sydney Jacobs: haha nicholas you never sleep
Kingey Oz: What if you don't approve it?
You: The only reason I wouldn't approve it would be suspicion of fraud.
Walker Spaight: do you foresse a time when withdrawals will be possible through an ATM, as they are from other services?
Sydney Jacobs: thats a good question, what would make you refuse a withdrawal
You: You mean instant withdraws?
Walker Spaight: yes
Kingey Oz: Like instant coffee.
Kingey Oz: But faster!
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You: I don't think that would be a good idea. It's simply not prudent. Even ignoring seucirty issues, it makes bank runs more likely, and makes it necessary for me to keep the cash in hand. Currently it is stored in a GOM account, as an extra layer of safety.
You: The thing to remember, is that this isn't like GOM.
You: We don't simply hold the money in trust.
Kingey Oz: Is the currency exchange like GOM?
You: We need to use the money to pay interest
Walker Spaight: But people with GOM accoutns can get cash to their SL profiles on an immedaite basis, in-world, can't they?
Kingey Oz: I believe so Mr. Spaight.
Walker Spaight: thank you, Mr. Oz
You: so there is the possibility that a withdraw request will fail, or even disrupt our immediate plans.
Kingey Oz: Oh, call me KIngey.
OmegaX Zapata: GOM is instant, both ways
Kingey Oz: At least you don't have to worry about robberies.
Jincey Firefly: well, the price we pay for earning 1% is that GT Financial is adding value as the middleman.
You: Are the reasons withdraws are not instant, and will likely not be, clear?
You: The manual checks also allow me to keep track of people who attempt to deposit on saturday evening and withdraw on sunday morning, consistently.
Sydney Jacobs: oh sneaky ppl
Jincey Firefly: thanks, you too!
You: I had something to say.... oh yea..
You: Fixed costs.
You: We are currently renting this land for L$1.500 a week. This should not change anytime soon. We will start paying the servers that host our database soon, though the cost isn't entirely clear at the moment.
You: That is pretty much it.
Walker Spaight: thank you Nicholas
Walker Spaight: that was great
Sydney Jacobs: great presentatin nicholasYou: For our dwell boosting efforts
You: we are beggining support for events held at the building. This should cost about 4k a week, at the most.
You: Starting this week.
Kingey Oz: more than the interest you're paying out?
You: This is making our profit margins go way low, but we hope the growth offsets that. If not, they will be suspended.
You: We make more than the interest we pay out.
Kingey Oz: where will these transcripts be posted?
You: As in, we keep more than the interest we pay out
Kingey Oz: well I would hope
You: If there are no more questions
You: I think we are done now.
