How do I get the daily rate?
By doing nothing, i.e. leaving your funds on the balance account.
What does rollover mean?
Principal and interest will be moved into a new time deposit with identical duration once the current one matures.
Is my deposit insured?
There is no government insurance, e.g. FDIC, on our accounts. However, as with any other CD, principal and interest are covered by capital reserves.
Is it legal?
To our knowledge bitcoin has not been made illegal anywhere in the world. However, it's your responsibility to ensure that you comply with any law, rule or regulation in your jurisdiction.
Why are rates so low?
Rates are are based on our perception of market rates discounted for volatility and default risk.
Why are rates so high?
See above.
What's your investment strategy?
Our investment strategy is to build a well diversified portfolio with minimum risk exposure in order to extract the "market rate". We will only invest in bitcoin nominated securities, mainly listed ones.
This is a ponzi-scheme!
Not really a question but fair enough. We do fall into some characterizations of a ponzi-scheme:
  • Propose investments that are high-return, no-risk, and principal-protected. (Note: we're not claiming to be risk-free).
  • Management operates under a company name.
  • Run as an unlicensed business.
Other common characterizations of a ponzi-scheme:
  • High barriers to entry. The idea is that the victim will feel privileged to "be in on the deal".
  • Purport to use proprietary trading software and/or special connections.
  • Claims to expertise in derivative trading or other complicated trading schemes.
  • Inflated claims of funds under management.
  • Inflated claims of returns on assets.
  • Auditors who will "vouch" that the investments and accounts are legitimate.
  • Make false claims that investments are insured.
  • Target faith-based and/or ethnically or culturally based associations.
Why aren't you a registered company?
We're awaiting regulatory clarity within our jurisdiction of residence, alternatively a jurisdiction where regulations are clearly defined and that we can find confidence in. As it stands now the legacy banking system is divided into regional regulation, bound to national currencies and high barriers to entry, and international banking, regulated by central banks and even higher barriers to entry. None of which fits our business model.
Are you engaging in Fractional Reserve Banking?
Fractional Reserve Banking is traditionally associated with credit expansion in deposit banks. Credit expansion is in turn dependent on money substitutes. We are not a deposit bank and we do not create money substitutes and there are few incentives for anyone in the bitcoin economy to accept money substitutes instead of base money. Read the excellent master thesis of Peter Surda on the topic here.
Will you ever accept (insert alternative coin here)?
If/when altcoin capital markets gain enough liquidity we might consider it.
Why should I trust you?
This is a problem all financial institutions have to face. Our goal is to become the most responsible and reputable savings institution in the bitcoin community. Only time will tell if we succeed.