Market Discussions

Nocxium Short Investment Opportunity


Introduction
In short sell, you borrow an asset from a third-party to sell on the market today, purchase it back from the market at a later time, and return it to the third-party. This is an advantageous investment if you expect the asset’s price to drop in the future. With the coming patch, Nocxium is an ideal candidate to short. Speculators believe that the price of Nocxium will increase significantly during patch day and eventually drop to a new equilibrium price.


The Offer
This is an investment opportunity to short Nocxium during patch day. We will sell standard short contracts with specified opening and closing price, maturity date, and fees. We will handle all Nocxium sales and purchases. You must maintain a proper maintenance margin or risk losing your contract.


The Contract
Asset: Nocxium
Volume: 100,000 units
Opening Price: Market Price
Closing Price: TBD
Maturity Date: 6 months from purchase
Initial margin: 10M ISK
Maintenance Margin: 10M + 100,000 * (Market Price – Opening Price)
Fees: 20% of profits at maturity, 1% monthly interest rate.
Contracts can be settle before maturity by contacting Block Ukx.


Submit a Contract
Fill out the contract request form and send 10 M ISK per contract to Block Ukx, with reason Nx Contract. I will do my best to match prices, but keep in mind I’m not login 24 hours a day. I will maintain a public list of submitted contracts.


Updating a Contract
You can update your contract opening price any time before is accepted by submitting a new contract and selecting YES under “is this an update?”.


Accepted Contracts
On patch day and few days after, we will process 200 contracts from low to high opening price. I will maintain a public list of accepted contracts.


Maximum
We will accept a maximum 200 contracts with a 10 contract limit per customer.


Reservation
Yes and strongly recommended. A reservation is not a right to a contract. We will process 200 contracts from low to high opening price.

An Example
You purchase one contract with a 1,200 ISK opening market price and 800 ISK closing price. We will then sell the Nocxium at 1,200 and purchase it back from the market when it reaches 800 ISK. Let’s assume it took two months for this contract to settle. At closing we will return your margin plus profits. In this case your profit will be:
40,000,000 ISK (sale) – 8,000,000 (20% profits) – 2,400,000 (2% interest)
OR
29,600,000 ISK


What about ROI?
Let’s assume the price dropped steadily from 1,200 to 800 in those two months, so your 10 M margin would have been enough. Your return of investment would be 29.6 / 10 OR 296 %.


Can I loose ISK?
Yes. If the price of Nocxium is higher than your opening price six months later, you will lose ISK. Let’s assume settlement price is 1,300. The loss of investment would be 100 * 100,000 = 10,000,000 ISK. You may choose to settle your contract prior to maturity by contacting Block Ukx.


Terms are subject to change.

Contract Form
https://docs.google.com/spreadsheet/viewform?formkey=dDFmZThUSXVTNFhQanVEUHJEeGFfVnc6MQ#gid=0

Submitted Contracts
https://docs.google.com/spreadsheet/ccc?key=0Ah53WXW4neIxdDFmZThUSXVTNFhQanVEUHJEeGFfVnc#gid=0


Please ask questions here.

ahahahahahahahahahaha

at least it's a new scam, I'll give you that

May want to consider hiding the Eve Name, or make it optional? If the user checks "anonymous" the name on the list shows as "anonymous", you however would still know who it is.

Might get more participation?

Thanks for the good laugh!

If you wish to remain anonymous, please contact me and I will send you an userid for shorting.

I normally login between 9-10 pm EST, and plan to login earlier patch day.

The price will be the best available market price (Jita and other hubs when possible). I will process the contract (sell Nocxium) when the market price meets the contract's opening price. Similarly, I will settle the contract when the market price meets the closing price.

I disagree. These are shorts.

The investor is borrowing the Nocxium from the Reserve so he can sell it on the market. The main difference from RL is that the investor is not getting physical Nocxium. Instead, I’m selling it for him and holding the funds so I can purchase it for him at a later time at the closing price. Basically, I’m acting as his broker. Unlike forwards and futures, he can settle the contract at anytime at market price.

The use of a contract is simply to formalize the agreement. The maturity date is meant as a maximum length of this agreement.

This is a very very nice idea, which i have been considering myself, and to be fair i wouldn't bring myself on trying out.

Derivatives...

In my opinion CCP should implement them one way or the other through the existing contract system.

The very same process the OP is describing could very well be implemented by CCP in a fashion based on complex in-game contracts similar to the way production and research using BPO's work right now. It would be a 'game system enforced' way of creating and 'crearing' derivatives contracts (financial instruments) between an author, like an MD veteran that represents the 'investment bank' so to speak, and an investor.


It would go like this, for the financial instrument the OP is describing :

1) The author creates a contract immediately 'paying out front' to the 'system' the maximum potential profit an investor could get from the deal and also has the corresponding minerals/items/various materials being 'confiscated' until clearing of the contract.

*** for example based on the system the OP is describing and using the numbers he posted. the author 'pays' the maximum profit an investor can have, aka 29,600,000 ISK, and has his 100.000 units of nocxium 'confiscated' from the station hangar. ***

2) An investor buys the contract with the isk that corresponds to the maximum potential loss, similar to the collateral of a courier contract.

3) upon the date agreed, the system sells the units at the best available current buy order, in the station where the contract was created. It then 'keeps' that capital along with the isk the investor paid until the maturity of the instrument.

3) At maturity the system automatically buys the same amount of items, and returns the same 100.000 units to the author and the remaining isk amount to the investor.

*** If this amount is less than the collateral then the investor is at a loss, otherwise he is at a gain. ***


nuff said.

It would be wise on the part of CCP, for these types of contracts to be closely moderated/regulated and require a new skill ( for example advanced contracts) and for a new very expensive skill book to be introduced so as to act both as a deterrent to both scammers and RMTers alike


P.S. I am not affiliated to the OP in any way and certainly i cannot and do not support his enterprise as being 'legit', safe e.t.c.

That is not a short sell and it is not what I'm describing here.


In short sell, the investor does not own the Nocxium, he is borrowing it from a third party (me). There is no Nocxium to "confiscate".