Refilling my T3 address is totally doable mid week, even in the future during normal operations, but i would urge you to use an updated btc price.
That makes so much more sense to use the price from when the refill is calculated.
After all we want to have $2,500 equvalent under your control.
I’m going to use $385 per BTC, which equals roughly 6.5 BTC, for the initial deposit.
I guess for the near future it won’t be possible to schedule the refill/withdrawal to once per week.
We might need to do that on demand to keep that T3 buffer refilled.
My withdrawal happens after 24 hours of being over-full. Refills happen once a week at a minimum. If all T3 custodians run dry on one side, it says we need more T3 custodians, but FLOT can choose to do a midweek refill of all custodians in a single transaction without any real input or confirmation from the custodians (seems to me anyway, just thinking about it logically).
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Right, I should’ve read the terms more carefully regarding withdrawal.
The suggestion of doing a midweek refill is not bad, but I prefer doing it only after the balance dropped below $1,000, because it saves FLOT and T3 custodians time.
Otherwise FLOT might blindly deposit funds and if 24h hours later the balance is above $4,000, the custodian needs to send funds back to FLOT.
Don’t you agree?
The weekly refill already has this caveat, but to some degree the impetus is on the T3 custodian to tell FLOT that they are under the $1000 mark on friday. For a midweek refill, FLOT is doing something not because of this contract but because of the overarching FLOT contract. Therefore, they will do what they have to to satify a contract that is bigger and more important than this one. However, if they send more than $4000 at any time, you have to assume that I’ll send it back 24 hours later if it doesnt get used.
Alright, to start off, I’ll give my current specifications:
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If Alix 4hr reads <40% on one side, the markup for that side will be 0.1% while the markup for the other side will be 0.5%. Otherwise, 0.3%. If you can convince me you’re a nupond provider, markup is 0.1%.
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I will only deal with people I know. i.e. if you don’t have a pseudonym here with a little reputation I’m not going to deal with you right now. I may lax this with time.
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I will be available to send funds at least once a day. Right now I’m still getting this all setup so no real promises, but we should be able to figure something out. If you don’t care about when you recieve the funds I can lock in your price and you can just send me some btc or nbt and I’ll finish off the trade when I can. Either way we’ll need to find a time that we are both actively messaging so we can decide on a price, whether I have actual access to the funds or not.
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No trades during high volatility times. If the 15min candle on bitfinex is >1% I might try to wait for a more stable price.
I’m open for business. Please note that I am still concentrating on my new executor duties and this takes a back seat for me this week.
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Awesome!
Just tell the FLOT if you start to run dry, or even create a tx via Cointoolkit and post it in the approriate FLOT (BTC, NBT) thread.
A link with the redeem script is in the OP of each thread.
Reading the terms again
I think we need a fix for the reward scheme.
Effectively you won’t get any compensation in times when trading with you is important.
If ALix reads <40% on one side, that side needs support.
Yet you receive no compensation for a trade under those circumstances, which I find bad.
I suggest that for trades if ALix reads <40% on one side, you pocket the 0.1% for supporting that side (which is still not much…).
How do you handle btc volatility risk?
I don’t, Nu does. I make sure not to trade during volatile 15 min intervals, but I can do nothing about day to day bitcoin volatility. What was FSRT or JL or FLOT doing about btc volatility risk when making deals with custodians?
nothing! 
really now, after some transactions i had with FSRT and JL, their first (and only?)
priority was to have a decent liquidity in exchanges (Poloniex) so the peg was safe. 
I wasn’t clear. I mean when you hold BTC, how do you avoid, assuming you want to, losing value when BTC prices drops.
He doesn’t, Nu does.
Nagalim is handling the funds on behalf of Nu. It’s Nu property he’s dealing with.
They are just as prone to BTC volatility as T4 funds still are (we need NuSafe!)
If this were a collateralized custodianship, it could change that, if the contract were made regarding $x in BTC.
A collateralized custodianship about x BTC would be different and keep the volatility risk at Nu.
OK. I was confused for a moment. Somehow thought he bought his fund from NU.
That just made me think of another kind of custodian – borrow fund from Nu against collateral and use the fund to earn profit from LP subsidy. Nu get more liquidity out of it.
That would be version 2 (“collateralized custodianship about x BTC”) of what I explained above, right?
If that’s after your fancy, make a proposal!
not quite but close. if one has btc he can be an LP using his btc, w/o going to Nu. the collateral should be other coins – ppc, bks, nsr…
If somebody uses from BTC from the own pocket, the volatility risk remains at him(/her).
Receiving BTC from Nu in a collateralized way (to keep the volatility risk at Nu) of course requires something different from BTC - PPC, BKS, BKC! (as soon as they are available), NBT?
If you want to put the volatility risk on a T3 custodian (by making him use own BTC funds), the compensation will likely be far above the compensation Nagalim requests.
I see a purpose for both models.
I wasn;t thinking of reducing volatility risk about the other kind of custodian. I thought it’s just a way to use other funds to increase T1-2 liquidity
That version (collateralized loans) is very similar to distributed reserves, i think.
It has a similar effect.
One of the reasons why I included USD stable tokens like BKC and NBT.
If we think about who pays the fee when I send a customer NBT, it should be obvious that I should pay the fee because it’s just Nu burning its own NBT, no big deal. However, when I send BTC it gets to be more complicated. How much of a premium fee do I send? Does Nu pay for it, or should the customer?
For now, I am having Nu pay the fee, and I’m using a 0.0002 BTC fee.