Proposal RIPEMD160 hash: **dd491de3ed1c69b080092d142ba13470cd398ce3**

`=##=##=##=##=##=## Custodian Hash starts with this line ##=##=##=##=##=##=`

Custodial Address:

BA9tumP4zyM1g2M8ZNieD2iAnMgdVPuQe3

Amount Requested:2729 NBT

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 11,000 NBT on the bid and ask side of the order books will be provided by the pool split over 3 currency pairs and 2 exchanges, resulting in a total maximum compensated liquidity of 22,000 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 up to 5.4% per month (**0.18%** per day) on SouthExchange’s **USD/NBT** pair on both sell and buy side to a maximum of 1,000 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 3000 NBT in total but split as follows:0.19% per day up to 1500 NBT on sell side ( max pay-out 171 NBT/60 days)0.29% per day up to 1500 NBT on buy side ( max pay-out 261 NBT/60 days)

with on average 7.2% per month (**0.24%** per day) per month on SouthExchange’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. 3480.00 NBT of the requested amount in this grant will be held as reserve to make pay-outs toconnected users.

Note: the new SouthExchange pairs will be activated after a period of testing. At the time of this grant it is not clear when that is. The grant assumes that this will be 10 October when the new term starts.

**Breakdown grant amount**

The current grant has 1081 NBT left as of 4 Oct UTC with about 6 days to go at a current payout rate of 30 NBT on average. 6 * 30 = 180 NBT. Allowing for a minor increase there will be approx. 1081 - 180 = 901 NBT left.

Total required 3480 + 150 (fee) - 901 (left) = 2729 NBT.

**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 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.html1

**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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**Status update**

**Changes in term 5 compared with term 4**

- Decreased interest on BTC pairs in line with Nu-Pool, still compensating buy side higher.
- Decreased interest on fiat pairs to reflect the lower risk profile.
- Decreased pool size of USD/NBT from 15000 to 10000 NBT
- Added USD/NBT pair on Southexchange
- Added BTC/NBT pair on SouthExchange
- Increased tolerance from 0.0075 to 0.0085 to better approach SAF=1 on average for all pairs on both exchanges

and enabling liquidity providers to increase their spread. - Changed term from 30 to 60 days

**7-Oct-2015 Edit / correction in payout**

There is a disturbing copy/paste error in this grant regarding the SouthXchange max- payout on the USD/NBT pair. The correct max payout should be 216 NBT/60 days. Therefore the grant total should have been 864 NBT lower. To ensure continuity of the pool I recommend to continue voting for this amount and I will pledge to burn the 864 NBT on passing of this grant.