Introducing F.DERP

Thursday, 19 June, Year 6 d.Tr. | Author: Mircea Popescu

To complement the low risk F.MPIF, MPEx is going to list F.DERP, which is going to back high risk speculative shorting of purported Bitcoin start-ups (DERPs).

The two such DERPs available currently on MPEx are D.BPAY and D.BTGO. The first recently acquired 50`000 BTC investment ($30 mn) at an implied valuation of 266`666 BTC ($160 mn). The second acquired 20`000 BTC investment ($12 mn) at a total valuation of 58`333 BTC.

As a first step, F.DERP will be backing the issuance of 10% of each of these, for which I have provided it with 32`499 BTC in backing. If the market conditions warrant, it will be provided with further capital and will sell further tranches, either in the already listed DERPs or in freshly minted ones.

Similarly to F.MPIF, F.DERP will not distribute dividends as a matter of course (but may distribute at the general manager's option). Because of the sensitive nature of this fund, I will be managing it personally. Also because of the sensitive nature of this fund, I will be charging it a performance fee equal to 10% of the NAV gain each period - irrespective if the fund is "up" or "down" from any arbitrary point in the past. To maintain liquidity, all ASKS under NAV will be bought up once during the 24 hour period after the fund reports. There is no particular obligation or promise that shares will be sold or available for sale at any particular price or at any particular time.

Expect the contract published sometime over the weekend, and then regular statements like for any other asset. F.DERP is also considering OTC trading Call or Put options on any of the DERPs in its portofolio. Should you be interested in such an arrangement please get in touch. Note that all such deals will be published as a matter of course by F.DERP.

That is all, really.

Category: F.DERP
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5 Responses

  1. Peter Lambert`s avatar
    Peter Lambert 
    Thursday, 26 June 2014

    So when is F.DERP going to be available for buying?

  2. Mircea Popescu`s avatar
    Mircea Popescu 
    Thursday, 26 June 2014

    Make a first report after the month ends, after which.

  3. Peter Lambert`s avatar
    Peter Lambert 
    Friday, 27 June 2014

    Aha, so the same deal as with F.MPIF. I guess that makes sense.

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