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Ilinea's Bond 'Alpha' - 1.5B @10% interest - 3 weeks - Status: Full

Author
Ilinea
Sebiestor Tribe
Minmatar Republic
#1 - 2011-11-28 23:14:44 UTC  |  Edited by: Ilinea
So far I have taken bonds non-publicly by colleagues, friends and corpmates only, which in the past have been always paid back timely with the promised interest. A recent event that lead again to a corpmate initiating himself the question of an investment into my activities and the fact that it seems I’m getting always out of ISK sooner than what I could invest and turn into a profit, has lead me to thoughts if I should try to initiate a public bond. I have thought long over this, about the pros and cons, before I finally decided to give it a try. Please bear with me, it’s the first time I do it in a public way and I hope I do it all right.


About me and what I do:

I don’t always like to be branded as just a trader, as I have done and do many other things in EVE from time to time too and as many think, trading is just a carebear thing everyone could do (I promise you, the way people like me or better ones do it, it’s not!). But yes, 90% of my time or sometimes up to 100% I’m a trader. And I enjoy what I do. I enjoy opening the market window and looking for opportunities. I enjoy the blinking of my wallet. I enjoy tampering into new areas, doing research regarding ways to make money out of new introduced features and changes and always learn more than I know. There’s more to learn here, than some would ever think it is, as the moment you start working on the market, you learn how others are using the game and its items and many more things about EvE and its people.



How will this bond be used (Business Plan)?

Based on all my experiences, I have developed recently a new strategy, involving very specific items, that I have used over the last week several times successfully to turn small investments into high profits. The volumes in this specific market are actually low compared to other high volume markets and as that the turnaround slower. However, the margins are high and very profitable in itself, while it involves much less continued work than a daytrader’s activities to keep everything up and running. Based on my research, the demand exists and is expected to even raise, while the possibilities for new supply are very limited. The competition is, due to the nature of the items and the over-regional work involved to turn it into a higher profit like I did, limited, I would say for station daytraders to some extent uninteresting.

The specific goods involve a small risk to not be sold sometimes within small timeframes. There is also a small risk involved of having not 100% of the stock re-sold. However, the low volume of the goods and their high profit margins returned by my strategy account widely for this. Even if I would end up with 50% of the stock stuck for some time, the other 50% sold will have made up for large profits already, able to cover easily all interest return on the bond.

To be widely successful in this area, it’s necessary to involve more regions that I actually do. I have researched the regions and monitored them carefully over the last weeks, so I already know what I will do. Profits could be increased further, by putting some control on the supply on the market. To extend my activities in that market to the point described, those things require additional capital though. Since the potential in this turned out to be big, I decided it is worth to fund additional capital, even it means to share some of the wealth with you. That is what I need the capital for and what I will use it for.



Are there risks?

As with any investment, there are always risks. What I do to minimize those risks? I will take the same precautions for the investors’ money, which I’m taking for my own assets to keep them safe. First of all, I don’t take risks in trades that I can’t afford, would I lose on them. When hauling is involved, I have a fleet of several ships, from the smallest and fastest to the largest ones (several freighters) on different locations, that I decide to use depending on the cargo, it’s value and the possible dangers of the route involved to minimize risks.



The Details of Bond ‘Alpha’ (summary):

Bond: 1,500,000,000 (1.5 Billion) ISK

Collateral: None

Interest: 11%, in the case of a worst case scenario a 5% return is still guaranteed

Used for: Trading Activities into a very profitable sector

Starting Date: Launching occurs as soon investors have sent their ISK.

Running Time:
As I’m flying for Christmas to my family and won’t be playing Eve these days, it will run until 22th December. Investments will be returned before Christmas. If for real life reasons I wouldn’t be able to make all returns the day before leaving, I reserve the right to extend it for a week and all returns will be made before New Year.

Did I forget to mention something or do you have questions? If so, please let me know. Also feel free to convo me ingame.

They told me to mine... and I started to mine, the market ;)

Ilinea
Sebiestor Tribe
Minmatar Republic
#2 - 2011-11-28 23:15:26 UTC
Some more information...

My Skills:

  • Accounting Lvl5
  • Broker Relations Lvl4
  • Daytrading Lvl4
  • Margin Trading Lvl5
  • Marketing Lvl4
  • Procurement Lvl4
  • Retail Lvl5
  • Trade Lvl5
  • Wholesale currently training Lvl5
  • Tycoon, planned for training immediately after Wholesale Lvl5
  • Some other assisting skills (like Refinery Efficiency)
  • Good standings towards stations I’m trading to further reduce broker fees.
  • A total of 239 available order slots (incl. those trained on 2 chars on the same account, which actually I’m extremely rarely using though)


As of the writing of this, my current balances are:
Wallet Balance: 840M
Buy Orders Total: 1.2B
ISK In Escrow: 0.3M
Sell Orders Total: 1.9B
(Notice: Those values can change rapidly several times a day. )
Several values in assets I’m not counting towards this, like goods but also ships incl. Freighters.



What would happen in a worst case scenario?

Fortune would have to be very mad at me for a whole month, for such a scenario to occur. As I never invest everything into one thing, it would take to fail at all trades for such a scenario. I even have several routes that I’m switching for the often-travelled locations (like high traffic hub-to-hub routes), outside of the one Autopilot suggestion. Even when ganked or other accidents would happen, the largest amount of lost valuables is limited to 500M (as I never haul more than that at once and losses within stations are impossible). I plan forward and in the case of one failed trade I have backup-strategies to always get a huge percentage of the value still back.

Should fortune really have reasons to be that mad at me, I feel obligated the investors will get their investment still back. For that reason I have limited the bond to a value I could pay at least twice back, if everything goes horribly wrong. In that case I would like to provide a guaranteed 5% return. As that, the only risk an investor is taking is to lose only 50% of their interest but 0% of their invested money.


Is the OP a scammer?

It could be. As anyone could be a scammer. I’m sorry to have nothing more right now to give you than my word, even if it seems to not count that much in EvE today anymore (that’s sad). However, I have no history of a scammer and no connection to scams (feel free to check anything about me) and I’m looking forward to do business with others also in the long future. In either case, please invest only what you can afford.


Other questions are welcomed.

They told me to mine... and I started to mine, the market ;)

Zions Child
Higashikata Industries
#3 - 2011-11-29 02:02:03 UTC
With regards to your skills, I would have traded broker relations to five before margin trading. The benefit in margin trading being at five versus broker relations is: (.75^4-.75^5) = 8% less in escrow versus (0.05%) reduction in costs, which adds up very quickly.

Anyways, I might be willing to invest in this, however, may I get a confirmation from people who have previously lent you money, and more of an explanation as to why they cannot provide this bond?
Gamov
Comply Or Die
Pandemic Horde
#4 - 2011-11-29 02:46:50 UTC
I would invest in this bond 1.5bil while holding 3 of your frieghters as collateral
Ilinea
Sebiestor Tribe
Minmatar Republic
#5 - 2011-11-29 03:19:29 UTC
Zions Child wrote:
With regards to your skills, I would have traded broker relations to five before margin trading. The benefit in margin trading being at five versus broker relations is: (.75^4-.75^5) = 8% less in escrow versus (0.05%) reduction in costs, which adds up very quickly.


You are right that it can add up quickly. However it was more beneficial to me, to have less ISK in escrow and larger amounts available for fast turnarounds and the ability of putting more buy orders or higher volumes up. The standings I have gained at stations I trade often have lowered my broker fee to a 0.5% so far already. Further I profitted by training other skills first that gave me higher percentages (perfect refining as example). Broker relations 5 is on my plan to be trained asap though.

Zions Child wrote:

Anyways, I might be willing to invest in this, however, may I get a confirmation from people who have previously lent you money, and more of an explanation as to why they cannot provide this bond?


I had a longer break from Eve and returned just recently before some weeks, some of those having invested in that time before are unfortunately not playing anymore. However, those that provided me very recently some capital, should have no problem confirming this to you. I just don't wanted to influence anyone's opinion by having friends or corpmates vote for me here. As you asked though for it, I'm gonna ask them to confirm their investment.

They told me to mine... and I started to mine, the market ;)

Ilinea
Sebiestor Tribe
Minmatar Republic
#6 - 2011-11-29 03:27:54 UTC
Gamov wrote:
I would invest in this bond 1.5bil while holding 3 of your frieghters as collateral


If I wouldn't need those for my activities, I would consider an option like that. Unfortunately, this would limit my mobility and ability to move my cargo. Also, 3 freighters are a lot more worth than 1.5b actually. So I have to decline.

They told me to mine... and I started to mine, the market ;)

Zions Child
Higashikata Industries
#7 - 2011-11-29 03:49:46 UTC
Ilinea wrote:
Gamov wrote:
I would invest in this bond 1.5bil while holding 3 of your frieghters as collateral


If I wouldn't need those for my activities, I would consider an option like that. Unfortunately, this would limit my mobility and ability to move my cargo. Also, 3 freighters are a lot more worth than 1.5b actually. So I have to decline.



If you could collateralize some of the loan, I would be willing to take it at a lower interest rate. This would depend on how much could be collateralized. I would still be willing to invest if you cannot provide collateral, so long as I have reasonable assurance from previous investors.
Ilinea
Sebiestor Tribe
Minmatar Republic
#8 - 2011-11-29 04:10:56 UTC
Zions Child wrote:
Ilinea wrote:
Gamov wrote:
I would invest in this bond 1.5bil while holding 3 of your frieghters as collateral


If I wouldn't need those for my activities, I would consider an option like that. Unfortunately, this would limit my mobility and ability to move my cargo. Also, 3 freighters are a lot more worth than 1.5b actually. So I have to decline.



If you could collateralize some of the loan, I would be willing to take it at a lower interest rate. This would depend on how much could be collateralized. I would still be willing to invest if you cannot provide collateral, so long as I have reasonable assurance from previous investors.



The lower interest rate is actually worth thinking about it, as it means more profit for me. ;)

I might be able to provide some small collateral based on some goods I have gained from contracts recently (fully fitted ships with 100% T2 fittings as example), if that would be the only option for investors. But it wouldn't be one nice big thing, but many small, doing a little bit more work to calculate them (I would guess investors wouldn't like that, so I left it all out). I'm not sure though, if that makes a big difference as I expect their total value not to be high. Anyway, I would prefer to wait the confirmation from the previous/current investors and await your response to see if that is sufficient to you. I have emailed them ingame and they will reply hopefully next time they will be online.

I'm going to sleep now, I'll be available tomorrow again for replies.

They told me to mine... and I started to mine, the market ;)

Atreyu Bayne
Aliastra
Gallente Federation
#9 - 2011-11-29 06:11:14 UTC
I'll loan to you, no collateral required. Catch me online or evemail me ingame.

The wall of text won me over.
Zions Child
Higashikata Industries
#10 - 2011-11-29 07:59:27 UTC
Atreyu Bayne wrote:
I'll loan to you, no collateral required. Catch me online or evemail me ingame.

The wall of text won me over.


Hey! I got here first! Jerk....

I'll loan it to you at 10% no collateral.
Cpt Syrinx
Jovian Labs
Jovian Enterprises
#11 - 2011-11-29 15:54:20 UTC
I'd like to confirm that I have started Ilinea out with a small private investment in this bond when the opportunity was made known to corp.
Cpt Syrinx
Jovian Labs
Jovian Enterprises
#12 - 2011-11-29 15:54:50 UTC  |  Edited by: Cpt Syrinx
double post
Zions Child
Higashikata Industries
#13 - 2011-11-29 21:42:40 UTC
Lent 50% at 11% ROI, confirming.
Ilinea
Sebiestor Tribe
Minmatar Republic
#14 - 2011-11-29 21:45:37 UTC  |  Edited by: Ilinea
I'm confirming that Zions Child transferred 750M to the bond.

Atreyu Bayne will receive the other 50% of the bond as soon that transfer will be completed.

They told me to mine... and I started to mine, the market ;)

Atreyu Bayne
Aliastra
Gallente Federation
#15 - 2011-11-29 22:29:20 UTC
Confirming that I've lent 50%

And things are a go =)
Ilinea
Sebiestor Tribe
Minmatar Republic
#16 - 2011-11-29 22:51:17 UTC
Atreyu Bayne wrote:
Confirming that I've lent 50%

And things are a go =)


Thank you, confirming that I've received them.

They told me to mine... and I started to mine, the market ;)

Grenobulax
Brutor Tribe
Minmatar Republic
#17 - 2011-11-30 17:57:40 UTC
I have invested 250M on faith.

Ilinea's bond is a good risk, and I could afford to lose that much or I couldn't even buy and sell myself.
Ilinea
Sebiestor Tribe
Minmatar Republic
#18 - 2011-12-12 03:04:15 UTC
We are more or less around half-way through the bond's runtime and I would like to keep you updated.

The bond has been successfully used into the items I was planning for. My estimations about the market turned out to be correct, with one positive exception: The profits turned out to be higher and they already returned a multiple of the bond's interest alone in the first days even with the expected slow sales and extremely low volume. The last days some more traders seem to have "awakened" about this possibility, but I'm still doing great, as I now control several regions for these items and there is no way of oversupplying the market.

It's expected, that the bond will be paid out as planned.

They told me to mine... and I started to mine, the market ;)

Ilinea
Sebiestor Tribe
Minmatar Republic
#19 - 2011-12-22 02:39:58 UTC
We have the 22nd and it's the time for harvesting :)

The investments of Zions Child and Atreyu Bayne have been just paid back plus the promised return.

Thank you to both, it was a really great help for my business that did bring me a lot forward.

I wish everyone of you a merry christmas.

They told me to mine... and I started to mine, the market ;)

Atreyu Bayne
Aliastra
Gallente Federation
#20 - 2011-12-22 02:43:57 UTC
Ilinea wrote:
We have the 22nd and it's the time for harvesting :)

The investments of Zions Child and Atreyu Bayne have been just paid back plus the promised return.

Thank you to both, it was a really great help for my business that did bring me a lot forward.

I wish everyone of you a merry christmas.


Confirming receipt of initial investment + interest.

Thank you.
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