I honestly don't have an accounts link to hand but it's been there every year. There's a section that specifically says, amount needed to satisfy x% reserve of tt value and then it lists the exact tt value of all eu. I'm not sure what it is I'm meant to be being ignorant about. I know for sure it's there because there was a massive thread made about it years ago when Ma switched from having enough money to cover all tt to only having a fixed percent.
No, it's not the case. They have never had reserves or use a fixed%, at no % that they have stated officially. They have some equity yes, but they have never said that that would be some % of the tt value the players have.
Finally someone who knows. Thank you.
I agree that don't think that would be hard to achieve if they really decide it's worth it, but lest we get carried away, MA has claimed to be pursuing all kinds of things that never go anywhere.
It think it's 10 or 12%, but it a bit more complicated formula to calculate it depending how risky the asset you are holding. But I think people sometimes misunderstands this demand. The demand is that they need to have a equity-ratio compared to the total assets.
It looks like something like this, a bit simplified and maybe not 100% correct:
Equity = Assets - Liabilities.
So, let's say MA start from scratch, setting up a new Mindark bank where we make our deposits. Let's say the bank company is empty of assets and liabilites, Equity (Assets - Liabilities) =0. The players deposits 1MUSD, when that happens the bank gets Cash Assets 1MUSD, "TT PED" Liabilities 1MUSD . Equity=1MUSD-1MUSD=0. But the "Equity" demand is 10% of the assets, or 0.1 MUSD. They would already be in some trouble. But in this case if they have all the money in cash or other "risk free" assets, they demand will be zero, but if they start to use that money to other stuff they need to increase their equity to cover the increased risk.
Okey, as long as MA only have our money in cash or near risk free assets, not such a big problem? Well.......... I just remember... we already have about 70MUSD of tt value in the game. So... if MA wants to cover these tt value also, they need to put in about 70MUSD in cash assets to the bank, because otherwise it would look like this:
Equity = Assets 0 - Liabilities 70MUSD = -70MUSD. And the Equity are not allowed to be negative.
See the problem? It's not the future deposits that are the huge problem, it's the old assets that MA have not covered, how are they suppose to handle that? They could say "Hey sorry we must start over and all your tt assets are deleted, sorry". I don't think they would do that because that would kill the existing player-base and it would be game over for them. So they need a lot of new fresh money to be able to put banking system in-place. To find investors willing to put that kind of money in the game they probably need to increase the player-base a lot and show the investors that they are in a positive grow-trend with a lot of potential. I don't feel that will happen in the near future.
For example, lets say the demand is 10%.
