Updated Conditions of Venture

This supersedes the Conditions of Venture as shown in the original proposal.  No major changes to the core idea behind the venture.  Please review.

Introduction

  • This proposal is to seek SGD$6000 of funding for the purchase of 1 Saturn ASIC from KNCminer for the purpose of mining for profit.
  • The funds will be used for the acquisition, hosting and management of the miner. Anything left over is kept aside and all shareholders will have equal stake to decide what to do with the remainder.
  • Equal shares costing SGD$300 each (total of 20 shares) will be available for purchase for this venture.
  • Upon hitting the required number of shares, an interbank transfer will be made to KNCminer to secure the order.

Pre-Delivery

  • As communicated by KNCminer, delivery of unit will occur in October 2013. Updates will be available including tracking information on this blog.
  • Should any shareholder decide to exit the venture before delivery takes place, a vote will be called to (1) request for refund and distribute all capital equally or (2) existing shareholders to “buy-in” exiting shareholder share/s.
  • Should KNCminer not deliver by end of October 2013, a vote will be called on 1st November 2013 to (1) request for refund and distribute all capital equally or (2) wait for 1 month and review again every 1st of the following month.

Receipt of Unit

  • Once delivery has been made, miner will be secured at either (1) a local datacenter with unlimited power/cooling or (2) at my home where I will deduct electrical power costs from profits on a monthly basis which is estimated to be around SGD$105/month.
  • A vote will be made within the first week of operation to decide (1) if Saturn unit will be put up for auction for instant profit or (2) used for mining.  Note that decision has to be made based once I have a legitimate offer from interested parties.
  • All profits from mining will remain equally distributed to all shareholders up to a point where it is no longer profitable to run the Saturn unit.
  • The immediate priority will be to ROI the venture. Upon mining the equivalent of SGD$6000, a vote will be called to decide if all shareholders will be (1) paid out their initial investment, (2) reinvest for more computing power, (3) hold BTC for investment or (4) liquidate to SGD.
  • Subsequent votes will be called every 1st of every month to review balances both in SGD and BTC and decide if (1) pay out equally to all shareholders, (2) reinvest for more computing power, (3) hold BTC for investment or (4) liquidate to SGD.
  • All profits from mining will remain equally distributed to all shareholders up to a point where it is no longer profitable to run the Saturn unit.
  • Should it become no longer profitable to operate, the unit will be resold and all proceeds including all remaining profits split equally to all shareholders.
  • Should a shareholder decide to exit for whatever reason, his/her equal share at that point in time will be calculated and paid out. Subsequent profits will then be redistributed to remaining shareholders. Do note that exiting shareholder will not qualify for the proceeds of sale of the Saturn should it happen in future.
  • Liquidating might take time should it be in SGD.
  • Reinvesting for more hardware can be considered but will depend on shareholders. Do note that hosting with free power/cooling is limited and may not be available.
  • Commitment by myself to update all shareholders regularly, on this blog, on the status of all balances, including leftover from initial SGD$6000, and profits from mining, in BTC and/or SGD.

Breakfix & Outages

  • There is no commitment for 24/7 operations. There may be times where network issues may halt mining and resumption of mining is on a best effort basis. Note that the only showstopper is internet connectivity. Power/cooling is guaranteed 24/7.
  • Should the Saturn unit break down and fail to operate. I will take on the responsibility to restore it to operating condition as soon as possible. This will include communicating to KNCminer on fault reporting and resolution.
  • Should there be a need to buy components for repair and/or send the unit back to Sweden for replacement/repair it will be done with costs being covered by the existing balances in the venture.

I reserve the right to add/remove other conditions depending on the situation but will assure that it will be done to maximize shareholders benefits in this venture.

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