Cybnate/LiquidBits term 8 3-Apr-2016

## LiquidBits term 8 3-Apr-2016
**Funding request to operate Liquidbits.net, an automatic liquidity pool for US-NuBits.**

The independent automatic liquidity pool (ALP, also known as TLLP) will provide liquidity on the EUR/USNBT, USD/USNBT and BTC/USNBT markets on CCEDK.com.

A target of in total 6,000 USNBT on both the bid and ask side of the order books will be provided by the pool split over 3 currency pairs and 1 exchange, resulting in a total maximum compensated liquidity of 12,000 USNBT.

The operation will end after thirty (30) days when a motion or grant to continue operations haven't passed before.

**Liquidity provided by users will be compensated as follows:**

with up to 4.5% per month (**0.15%** per day) on CCEDK’s **USNBT/EUR** pair on both sell and buy side to a maximum of 2,000 USNBT on each side ( max pay-out 180 USNBT/30 days)

with up to 4.2% per month (**0.14%** per day) on CCEDK’s **USNBT/USD** pair on both sell and buy side to a maximum of 3,500 USNBT on each side (max pay-out 294 NBT/30 days)

with on average 6% per month (**0.20%** per day) per month on CCEDK's **USNBT/BTC** pair to a maximum of 1000 USNBT in total but split as follows:

- 0.15% per day up to 500 USNBT on sell side ( max pay-out 22.50 USNBT/30 days)
- 0.25% per day up to 500 USNBT on buy side ( max pay-out 37.50 USNBT/30 days)

using the pool’s calculations based on the Dutch auction model to allow a fair distribution of returns amongst liquidity providers. Based on experience only less than 90% is used for actual payouts. Therefore the amount requested is reduced by 90% x 534 USNBT = 481 (rounded).

481 USNBT of the requested amount in this grant will be held as reserve to make pay-outs to connected users.

**Breakdown grant amount**

There won't be a rollover as funds have been lost. See details here: https://discuss.nubits.com/t/passed-liquidbits-term-7-addendum/3578/43

######
###### > Total required:
###### >  481+150 (fee) =  631 USNBT for 30 days.


-----
**Terms and conditions**

Pay-outs take place every 24 hours. The minimum pay-out is 1 USNBT. The allowed spread is reduced to 1%. 0.5% on either side of a pair. Operations and pay-outs will start within 3 days after the custodial grant has passed successfully. The pool will continue to operate under the name LiquidBits.net. Remaining funds will be settled (rolled-over) with future grants or when the pool is discontinued, burned.

**Fee**

The pool 1 month fee is a one-off 150 USNBT and serves as a contribution for the effort of supporting the pool, the website, reporting, supporting the users and the monthly costs of operating the server including Cloudflare protection with SSL certificates.

**Instructions**
Instructions on how to participate in the pool can be found here: http://cybnate.github.io/index-liquidbits.html

**Disclaimer and risks**
The provisioning of the pool is based on best efforts. No claims can be made by users when the pool server or client software is not available or not working properly.

Liquidity providers remain in full control of their funds throughout the operation of the pool. The pool operator won’t have access to any of the funds hence the reference to trust less liquidity pool. Therefore liquidity providers bear the full risk having their funds on the exchange and won’t be compensated by this pool on an exchange default or inability to withdraw their funds.

Liquidity providers are exposed to the risks of speculators hedging against them on other pairs than USNBT/USD like USNBT/EUR with the USNBT/BTC pairs a particular high risk due to BTC's high volatility. Therefore the compensation on the riskier pairs is higher.

Finally, please be reminded of the following:

**Don’t risk more than you can afford to lose!**


**Key changes between proposal term 7 and this proposal:**
- Reduced the maximum spread to 1%. This better reflects the role of an ALP.
- Reduced targets on EUR and USD pairs approximately by half.
- This grant is only for 30 days anticipating operational ALPv2 software.

---

---

[Proposal](https://daology.org/p/d09664871e9e7a3ebec7e35a8bca077b94add078) created with [Daology.org](https://daology.org) by [cybnate](https://daology.org/u/cybnate) for [Nu](https://daology.org/o/Nu)
	Funding request to operate Liquidbits.net, an automatic liquidity pool for US-NuBits.

	The independent automatic liquidity pool (ALP, also known as TLLP) will provide liquidity on the EUR/USNBT, USD/USNBT and BTC/USNBT markets on CCEDK.com.

	A target of in total 6,000 USNBT on both the bid and ask side of the order books will be provided by the pool split over 3 currency pairs and 1 exchange, resulting in a total maximum compensated liquidity of 12,000 USNBT.

	The operation will end after thirty (30) days when a motion or grant to continue operations haven't passed before.

	Liquidity provided by users will be compensated as follows:

	with up to 4.5% per month (0.15% per day) on CCEDK’s USNBT/EUR pair on both sell and buy side to a maximum of 2,000 USNBT on each side ( max pay-out 180 USNBT/30 days)

	with up to 4.2% per month (0.14% per day) on CCEDK’s USNBT/USD pair on both sell and buy side to a maximum of 3,500 USNBT on each side (max pay-out 294 NBT/30 days)

	with on average 6% per month (0.20% per day) per month on CCEDK's USNBT/BTC pair to a maximum of 1000 USNBT in total but split as follows:

	- 0.15% per day up to 500 USNBT on sell side ( max pay-out 22.50 USNBT/30 days)
	- 0.25% per day up to 500 USNBT on buy side ( max pay-out 37.50 USNBT/30 days)

	using the pool’s calculations based on the Dutch auction model to allow a fair distribution of returns amongst liquidity providers. Based on experience only less than 90% is used for actual payouts. Therefore the amount requested is reduced by 90% x 534 USNBT = 481 (rounded).

	481 USNBT of the requested amount in this grant will be held as reserve to make pay-outs to connected users.

	Breakdown grant amount

	There won't be a rollover as funds have been lost. See details here: https://discuss.nubits.com/t/passed-liquidbits-term-7-addendum/3578/43

	######
	###### > Total required:
	###### > 481+150 (fee) = 631 USNBT for 30 days.


	-----
	Terms and conditions

	Pay-outs take place every 24 hours. The minimum pay-out is 1 USNBT. The allowed spread is reduced to 1%. 0.5% on either side of a pair. Operations and pay-outs will start within 3 days after the custodial grant has passed successfully. The pool will continue to operate under the name LiquidBits.net. Remaining funds will be settled (rolled-over) with future grants or when the pool is discontinued, burned.

	Fee

	The pool 1 month fee is a one-off 150 USNBT and serves as a contribution for the effort of supporting the pool, the website, reporting, supporting the users and the monthly costs of operating the server including Cloudflare protection with SSL certificates.

	Instructions
	Instructions on how to participate in the pool can be found here: http://cybnate.github.io/index-liquidbits.html

	Disclaimer and risks
	The provisioning of the pool is based on best efforts. No claims can be made by users when the pool server or client software is not available or not working properly.

	Liquidity providers remain in full control of their funds throughout the operation of the pool. The pool operator won’t have access to any of the funds hence the reference to trust less liquidity pool. Therefore liquidity providers bear the full risk having their funds on the exchange and won’t be compensated by this pool on an exchange default or inability to withdraw their funds.

	Liquidity providers are exposed to the risks of speculators hedging against them on other pairs than USNBT/USD like USNBT/EUR with the USNBT/BTC pairs a particular high risk due to BTC's high volatility. Therefore the compensation on the riskier pairs is higher.

	Finally, please be reminded of the following:

	Don’t risk more than you can afford to lose!



	Key changes between proposal term 7 and this proposal:
	- Reduced the maximum spread to 1%. This better reflects the role of an ALP.
	- Reduced targets on EUR and USD pairs approximately by half.
	- This grant is only for 30 days anticipating operational ALPv2 software.

	---

	---

	[Proposal](https://daology.org/p/d09664871e9e7a3ebec7e35a8bca077b94add078) created with [Daology.org](https://daology.org) by [cybnate](https://daology.org/u/cybnate) for [Nu](https://daology.org/o/Nu)