VEMEX registered public investment.
Investment published on: 2010-12-22 19:37:00.
Investment name: Collateral Holding Terms
NEISIN code: MRVAHCOIN012.
Official discussion: link to EvE forum prospectus.
Public Investments Archive for this investment: backlink.
Official audit: N.A.
Public Audits Records for this investment’s audit: N.A.
Type: Collateral management.
Archived by: Vaerah Vahrokha.
MRVAHCOIN012 Terms of Collateral Holding~1~
Abudman X – Moon 10 – Urban Management Bureau Office
Establishment of Terms of Collateral Holding
on the 22th December YC 112
Collateral Reclamation Terms
In case the Investee will disappear, default, forfeit, scam or any other event leading to an investment catastrophic loss, the collateral will be liquidated and in any case the Investor(s) will be refunded his starting capital of 2 (two) Billions ISK.
The Investee will have the stated 30 (thirty) days to run the investment plus 1 (one) grace day to fully reimburse the Investor(s) principal and pay full interests.
In case this won’t happen, the investment will be declared unsolvant but recoverable, with a collateral adsorbed penalty of 1% (one percent) of the principal per day of late payment of the full due. In the specific case, 20M of collateral will be liquidated per day and reimbursed to the Investor(s).
The unsolvant but recoverable status will last for 7 (seven) days.
After 7 days the penalty system will be undone, the investment will be declared in default and collateral liquidated and given to the Investor(s) within 2 (two) days.
The Third Party Collateral Holder will keep the difference between the default day’s collateral value minus the Investor(s) principal minus the adsorbed penalties.
Collateral Assets evaluation
– collateral consists of highly volatile and speculative items and
– the Investee chose not to hedge
– the Investee chose not to purchase a derivative asset
– the Investor will accept no loss on the principal
– Collateral items value is being marked to market at 2010-12-22 18:24:00 for a fair value of 58803 per unit.
– Collateral items price range in the last month has been from Nov 27 @ 46444.44 to Dec 18 @ 65999.96 = 19555.52 (33.26% of fair value)
– investment maturity date is past the next game patch, featuring more P.I. automation and therefore a foreseeable drop in collateral fair value to pre-last month’s accumulation value
– the Collateral Holder will commit liquidating collateral in the shortest possible amount of time, thus suffering a sales tax of 1%
The best post-speculation “bubble burst” collateral devaluation scenario puts items at a value of about 42k with a gross loss of 655,317,000 ISK.
Insurance for this investment
Considering the factors above and considering this is a first launch, Vahrokh Financial Technologies [VAHFT] will insure the Investor to be refunded 2B for a non refundable fee of 72M, to be paid upfront by the Investee.
Collateral holding fee
Vahrokh Financial Technologies [VAHFT] will waive any collateral holding fee for this investment.
In case the Investee had chosen using a liquid collateral with no risk of depreciation the grand total fees would have amounted to 28M