Market Discussions

This derivative will give you exposure to the Quantum Microprocessor market.

Total Value of units issued: 5 Billion

Price per unit: 500 Million

Exposure:
Margin trading of:
Quantum Microprocessor units

Positions in:
Quantum Microprocessor
Nonlinear Metamaterials
Nanotransistors
Phenolic Composites
Titanium Carbide

The amount that you receive from purchasing this derivative product is dependent on the performance of the underlying.

Closure date: 2013-08-15

Was it one of your alts who tried the credit rating scheme a few years back?

Edit - I see you're the same guy but posts on the old forum aren't recorded in your posting history. Welcome back!

As Hexxx has said, some more details are needed for the current post.

Both of these posts are a bit silly. You haven't said anything about how performance will be assessed, what a purchase of 500mil actually buys, and what, if any, security measures are in place. This last is the big one. Are you really asking people to send you unsecured isk on the basis of your OP?

Why? Trolling?

So, you have taken a couple of years off eve and haven't posted on the forums for nearly three years. The one MD project you have undertaken - your credit rating agency - was abandoned after a few weeks and you have no history of completed loans or bonds. You are now asking for 5 billion unsecured on deliberately ambiguous terms according to which purchasers will not know what they are purchasing or the underlying framework for valuing their purchases.

It sounds very much as if you want idiots for investors. If this is meant to be something other than a scam or a troll why would you deliberately leave out so much information that is critical for the kind of risk assessment that any vaguely rational investor will want to undertake?

I have actually worked a bit with the OP before and from my limited impression he knows his stuff and likes to play/display the technical side of things. This 'offering', however, is frankly bizarre and anyone who invests based on the present information deserves to lose their isk even if they don't. OP is asking for the kind of complete blind faith that is more appropriate for a religious movement than for an investment.

My main worry is that, if this is a scam, people will be taken in by the jargon and start making deals off the board where they can be fleeced repeatedly and in private.

Exactly what he is going to do and how he is going to do it is not at all clear and he is declining opportunities to clarify in favour of deliberate ambiguity. But, in short, my understanding is that he will do something a bit like Block does with BSAC and will take your isk and buy quantity of the mixed basket of goods he has identified. What is opaque is what he will then do with that stock. He could, of course, just sit on it and if it goes up he pays you your capital plus a profit at the end (possibly minus some undisclosed fee) while if it goes down you lose whatever it drops by. There are then various other, more complex things you could do, starting with buying on cyclical downswings and selling on upswings or he may even intend to short sell (somehow). I'm sure that 'derivatives' can cover a multitude of other possibilities that I'm not aware of and that are only poorly understood by real economists (such as those that caused the crash in 2008). (edit: the mention of 'margin trading' is particularly obscure as this could refer to a number of different things)

But the basic meaning of his post is 'You give me isk, I'll do some undisclosed thing somehow connected to quantum microprocessors with it, and then I'll give you back some isk at the end'. What's left out is ... well, everything meaningful. What sort of activities he will be carrying out with your isk, what fees he will charge, what risks he will be willing to take. And all this is on top of the information blackhole around the basic data that is needed to invest: alts, history, NAV etc. There are also unanswered questions about why someone who has been away from the game for years should be trusted with billions on his first day back etc etc etc. It's almost as if he is trying to create an offering that is as uninvestable as possible and see how many morons will fall for it. This is, I think, actually quite a real possibility given that he has been interested in profiling the investment market in the past.

Edit: Perhaps he intends to do something with Credit Default Swaps as he threatened to about three years ago:



http://www.eve-search.com/thread/1393740-0/page/2#40

In the absence of better information this is the best I can do.

The answer I got was hexagram 19: Lin or Noble Calling.

A derivative is a contract that derives value from an underlying commodity/financial instrument - but to do so it's terms MUST be defined for pricing to be possible and risk to be assessed.

I'll make this easier:

• Is it a futures or options contract?
• What underlying commodity does it tie to and at what price point?
• What window of time does the contract cover?
• If it is an options contract, is it a call or a put?
• If it's an options contract, what underlying volume of the commodity does it represent? 1 contract representing 1,000 units of....something? If it's a blend of commodities, again, define the blend.

To think that you could sell a derivative without defining this is...well...the technical term is "crazy". You're basically selling something that no one has any way of determining the value of and then asking them to give you money anyway.

p.s. "Margin Trading" is not a derivative - it's a loan on the market value of your assets (debt and ownership equity plus cash).

When you sell such a specialistic product, you are selling yourself before the product.

You are selling it poorly imo, you stay away for years and then come in like proposing a derivative is everyday's business and everybody may be trusted to be able and manage it (not even covering the "tiny" possibility of scams in EvE here).

Also please explain how do you mark it to market, how you'll manage open interest, how are you to manage backwardation and contango.
How often are you going to update clients' equity (since you talk about margin accounts) and what measures have you put in place to prevent such accounts from going below zero in case of sharp price decline?

So much to explain, but first you should explain why you deal in a Corestwo market without having some thick hairs on the stomach.