Market Discussions

PROSPECTUS


1. DEPOSITS and WITHDRAWALS
1.1 Minimum deposit: 10,000,000 ISK
1.2 Customers may make one withdrawal or deposit per month, in 10,000,000 ISK increments.
1.3 All such activity is limited to the first ten (10) days of the month (e.g. between the 1st and the 10th of the month).

2. ACCOUNTS
2.2 Maximum account balance: 100,000,000 ISK
2.3 By making a deposit, customer consents to BFAR's use of their name, account information and communications.

3. PAYOUTS
3.1 Each month customers are issued one payout.
3.2 Payouts are issued between the 1st and the 10th, for the prior month's activity (see METHOD below).
3.3 Payouts are transferred from BFAR's banking wallet to the customer's personal wallet.
3.4 No payout shall be less than 10% of a customer's deposit.

4. RESERVE
4.1 BFAR maintains a separate wallet division with an ISK ballance equal to the sum total of all customer deposits.

5. CUSTOMER BASE
5.1 BFAR will service no more than five accounts at a time.

6. METHOD
6.1 BFAR operates in monthly cycles.
6.2 Each month, BFAR bundles customer deposits with BFAR's own ISK and invests this pool of funds in the Essence Regional market, via buy and sell orders.
6.3 Profit/Loss is calculated at the end of each month, and payouts are issued to customers between the 1st and the 10th of the following month.
6.4 Profit is allotted to customers, and to BFAR, based on the percentage of the total investment pool held by each customer and BFAR.

Example:
Customer 1 deposits 100,000,000 ISK.
Customer 2 deposits 10,000,000 ISK.
BFAR invests 50,000,000 ISK
The total investment pool is 160,000,000 ISK.

Customer 1 receives 62.5% of any profit.
Customer 2 receives 6.25%.
BFAR receives 31.25%.

A profit of 100,000,000 ISK would be allotted as follows:
62,500,000 ISK to Customer 1
6,250,000 ISK to Customer 2
31,250,000 ISK to BFAR

6.5 Any payout found to be less than 10% of a customer's account balance shall be increased to equal 10% of the customer's account balance.

7. DECLARATION OF RIGHTS
7.1 BFAR reserves the right to fire customers at any time.
7.2 BFAR reserves the right to revise or delete the terms of the Prospectus at any time.
7.3 In the event of extraordinary circumstances, BFAR reserves the right to ignore the terms of the Prospectus.

And that's it.

Oh this is going to be interesting..

So you're a 'regional' bank but you don't offer loans. What this really is, is a bond offering with no collateral. People give you 100 million isk for what appears to be revenue generating tasks such as P.I & mining. I'm confused as to how or where your revenue comes from under the "banking" category if you don't offer loans? There are only so many ways you can dance around and entice what you're really after, other peoples isk to do whatever with it.

Sorry but this is going to be a total flop just like the other 3,000 banks before you.

;edit

I had to come back to add more to my post because I thought it was too derogatory and didn't want to sound like a complete ass, so I did the liberty of making a checklist summing up your FAQ/Prospectus.




What do you mean backed? Sounds like you're trying to have your liquidity backed by physical assets aka collateral held by a third party aka Chribba.



If your bank in real life told you that your saving account was earning 10% interest rate for free would you believe them?




This Q/A shoots yourself in the foot mainly because right off the bat, with EVEs steeped history of inter-corporate (or outer corporate) betrayals, I wouldn't trust a corp with any amount of isk. Hell, even if it was collateralized.



As my original post says, I fail to see how 'banking' generates you an isk worth of revenue if you aren't in the business of loans. Mining & PI numbers will definitely have to be audited. (30 million for mining isn't impressive at all by the way, but the thought that you're claiming 30 million gives it a notion that it should be checked and looked into).




Just go to investopedia and look up what a bank is. What you're trying to run here is a bond, I'm beginning to sound like a broken record.


Whew.

I would like to reserve the next available account for the maximum amount, please.

Done.

BFAR will be happy to accept your deposit between the 1st and 10th of April, 2014.

An email will be sent to you confirming your deposit once it has been received by BFAR.

Thank you for your interest and (most importantly) for your trust.

♪ ♫ ♪

Thank you for the support and positive attitude. Both are rare in bank threads.

We have toured the Eve-mogul website. While its services appear useful and the interface and layout look both impressive and easy to use, we found the cost-benefit to be lacking.

Specifically: we'd rather distribute 50,000,000 ISK in payouts to customers than deduct a like amount from our monthly income to pay for a service that mimics a set of skills we've already mastered, and otherwise utilize a simple spreadsheet for.

None of this services your legitimate desire for transparency, of course.

If you will allot us a measure of patience, we feel that you will come to regard the regular monthly payments that will be made to your soon-to-be-open account to constitute all the proof of profit you will ever need.

If you keep liquid ISK equal to what investors give you, and you're assuming the risk by ensuring they will get their ISK back, then why would you need to take anyone else's ISK in the first place?

This type of banking is called full reserve banking. Fractional reserve banking, the type of banking that caused the great depression and also the insolvency of EBANK, is by far more profitable, but less dependable from an account holder's viewpoint.

I noticed you said something similar on my thread, and I think what you're missing is that some people actually like to provide a service for people, offering them a slice of the pie, where others (like you) might consider that service simply being in debt.

Far, can you expand on the customer dropping policy? Do you issue your client's deposit back, and any partially accrued interest, or do you just give them the boot and keep the loot?

Exactly.

We at the Bank of Far are not interested in pushing all of our ISK into the marketplace.

Because we enjoy playing with other people's money (up to a point), it only makes sense that we use our ISK reserve (read: ISK sitting in a wallet division, doing nothing) in a responsible manner such that we cover our customer's deposits in the event those deposits are lost.

If we fire a customer, they get their full deposit back and we keep any interest earned. We then notify them of the return of their deposit and thank them for their business and their trust.

I have removed some rule breaking posts and those quoting them. As always I let some edge cases stay.
Please people, keep it on topic and above all civil!

The rules:
4. Personal attacks are prohibited.

Commonly known as flaming, personal attacks are posts that are designed to personally berate or insult another forum user. Posts of this nature are not beneficial to the community spirit that CCP promote and as such they will not be tolerated.

26. Off-topic posting is prohibited.

Off-topic posting is permitted within reason, as sometimes a single comment may color or lighten the tone of discussion. However, excessive posting of off-topic remarks in an attempt to derail a thread may result in the thread being locked, or a forum warning being issued.

I think this is a fabulous idea, and you should open up additional investment.