LiquidBits Term 6 (16-Nov-2015) Hash 7ba07a172907c1881f35c2264732fe84dad0539f

LiquidBits term 6 16-Nov-2015

**Funding request to operate Liquidbits.net, an automatic liquidity pool for NuBits.**

The independent automatic liquidity pool (ALP, also known as TLLP) will provide liquidity on the EUR/NBT, USD/NBT and BTC/NBT markets on CCEDK.com ~~and USD/NBT and BTC/NBT market on SouthExchange.~~ A target of 9,500 NBT on 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 19,000 NBT. The operation will end after sixty (60) 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 6% per month (**0.20%** per day) on CCEDK’s **EUR/NBT** pair on both sell and buy side to a maximum of 2,500 NBT on each side ( max pay-out 600 NBT/60 days)

with up to 5.4% per month (**0.18%** per day) on CCEDK’s **USD/NBT** pair on both sell and buy side to a maximum of 5,000 NBT on each side (max pay-out 1080 NBT/60 days)

with on average 7.2% per month (**0.24%** per day) per month on CCEDK's **BTC/NBT** pair to a maximum of 2000 NBT in total but split as follows:

- 0.19% per day up to 1000 NBT on sell side ( max pay-out  114 NBT/60 days)
- 0.29% per day up to 1000 NBT on buy side ( max pay-out  174 NBT/60 days)

using the pool’s calculations based on the Dutch auction model to allow a fair distribution of returns amongst liquidity providers. 1968.00 NBT of the requested amount in this grant will be held as reserve to make pay-outs to connected users.

**Breakdown grant amount**

The current grant has 1377 NBT left as of 30 Nov UTC with about 10 days to go at a current payout rate of 25 NBT on average. 10 * 25 = 250 NBT. Therefore there will be approx. 1377 - 250 = 1127 NBT left for rollover.

###### 
###### > Total required:
###### > 1968 + 300 (fee) - 1127 (rollover) = 1141 NBT for 2 months.


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**Terms and conditions**

Pay-outs take place every 24 hours. The minimum pay-out is 1 NBT. The spread continues to be 2% on either side with 0.0085 tolerance. Operations and pay-outs will start within 5 days after the custodial grant has passed successfully. The pool will continue to operate under the name LiquidBits.net. Remaining funds will be settled with future grants or when the pool is discontinued, burned.

**Fee**

The pool 2 month fee is a one-off 300 NBT 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 USD/NBT like EUR/NBT with the BTC/NBT pairs a particular high risk due to BTC's high volatility. Therefore the compensation on the riskier pairs is higher. 

~~SouthExchange is a relatively new exchange. Please do your own due diligence. This operation doesn't endorse the use of this exchange by the NuShareholders or myself.~~

Finally, please be reminded of the following:

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


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[Proposal](https://daology.org/p/919a242c6f8a88f041d2edaf659c2b38711df6a8) created with [Daology.org](https://daology.org) by [cybnate](https://daology.org/u/cybnate) for [Nu](https://daology.org/o/Nu)
Grant Address BLBitsWJvvahLNr71sHycEb7CvzXbJE8xm