Medicia Bank - Empowering Entropians

ON HOLD UNTIL CLARIFICATION ON PEER TO PEER LENDING OF PRIVATE LOANS IS ALLOWED OR NOT by MA


Hi,

My name is Stryder and I have setup a loan system to empower Entropians to enjoy their time and receive more profit and fun when their funds in real life may be low to deposit.

Medicia Bank offers 2 kinds of loans.

Types of loans

The first is a regular PED loan of 50 or 100 PED from 1 to 4 weeks. Also, loans for 500 or 1,000 PED are available with half of loan being secured by collateral in the form of PED, items, ore, etc. MU value is allowed to be used to figure this amount.

The second is specialized Hunting and Mining loans to leverage your existing PED for higher profit. Please go to Hunting and Mining loans section for more detailed info.

Fees
A first time loan fee of 10 PED will be charged to all new clients. This fee is due when the loan is paid back.

A late fee of 10 PED daily is charged for clients who have not paid back the loan within the agreed upon time frame.

How to request a loan

Either post on this thread or pm me the loan amount you want to borrow, the time you want to borrow 1 week to 4 weeks, and collateral you are going to be putting down if required for loan, and 3 days with times in entropia time good for you to meet.

I will then contact you via pm to setup the details to arrange for us to meet.

An image screen capture will be taken of each client meeting when the PED is about to be transfered as a record.

Loan Amounts and money owed when loan is due

No down payment required for 50 and 100 PED loans

50 PED, 1 Week = 60 PED due
50 PED, 2 Weeks = 70 PED due
50 PED, 3 Weeks = 80 PED due
50 PED, 4 Weeks = 90 PED due

100 PED, 1 Week = 120 PED due
100 PED, 2 Weeks = 140 PED due
100 PED, 3 Weeks = 160 PED due
100 PED, 4 Weeks = 180 PED due

Collateral of 50% is required for 500 and 1,000 PED loans. This can be in the form of PED, items, ore, etc. MU value is allowed to be used to figure this amount.


500 PED, 1 Week = 550 PED due
500 PED, 2 Weeks = 600 PED due
500 PED, 3 Weeks = 650 PED due
500 PED, 4 Weeks = 700 PED due

1,000 PED, 1 Week = 1,100 PED due
1,000 PED, 2 Weeks = 1,150 PED due
1,000 PED, 3 Weeks = 1,200 PED due
1,000 PED, 4 Weeks = 1,250 PED due

Hunting and Mining Loans

Do you find yourself wanting to drop more bombs, shoot some more creatures but always seem to miss that global or all time high? Well then a Hunting and Mining Loan is the choice for you. It was developed as a way to allow you to leverage your PED to make a larger profit off of your hunting and mining runs.

How it works is very simple. Medicia Bank allows you to leverage your money by allowing you to take out a loan for more PED than you currently have. You can leverage your PED based on your own risk decision.

Medicia Banks allows margins of 2 to 5 times what you currently have. At this time only 50, 100 and 200 PED margin loans are available.

50 PED Margin Loan

2:1 = 100 PED 120 PED due 1 week from when loan is taken out
3:1 = 150 PED 180 PED due
4:1 = 200 PED 240 PED due
5:1 = 250 PED 300 PED due

100 PED Margin Loan

2:1 = 200 PED 220 PED due 1 week from when loan is taken out
3:1 = 300 PED 360 PED due
4:1 = 400 PED 480 PED due
5:1 = 500 PED 600 PED due

200 PED Margin Loan

2:1 = 400 PED 480 PED due 1 week from when loan is taken out
3:1 = 600 PED 720 PED due
4:1 = 800 PED 960 PED due
5:1 = 1,000 PED 1,200 PED due

These margin loans can be taken out for only 1 week. Your initial amount of 50, 100, or 200 PED is held when loan is given plus another 25% collateral of total loan in the form of PED, items, ore, etc is required. MU value is allowed to be used to figure this amount.

This kind of loan requires that you have 3 friends vouch for your trustworthiness. A PM from each of them is required before a Margin Loan can be taken out.

Mmm.. Have you tried searching here about previous instances of these sorts of banking services?

I particularly recall Akoz' attempt to create the 'Citizens Bank of Entropia' in 2007.

This was closed due to MindArk's express policy on Banking operations within Entropia, posted here: Clarification about Entropia banking operations

Please note the final paragraph of that:

Bertha Bot said:

Therefore, any loan services offered outside the approved bank system will be considered by MindArk as scam attempts and the avatar offering such services risk a permanent lockdown of his/her account.

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I am afraid you need a bank license first if you want to provide that kind of services.

500% pa for the normal loan and 1k% pa for the margin loans. whoah!

subsribed

I have currently submitted a support question to see if Peer to Peer lending of private loans like this is allowed in EU or not.

I will update this thread when I know more

While many have not succeeded in this sort of thing, H&R has been doing something similar (Lending stuff for a fee in game) for several years.

Prosper.com might be something to look in to too.

Wasn't the bank license for two years?
So afaik this should and is legal

The banking licenses issued were for 2 years and those are now expired. Now the question is does peer to peer lending in Entropia violate the EULA or not.

MRmP said:

Wasn't the bank license for two years?
So afaik this should and is legal

Click to expand...

Yeah, it may change things...

Subscribing

strategist2 said:

The banking licenses issued were for 2 years and those are now expired....

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No.

The banking licences weren't issued for 2 years .. they were given a 2 year exclusive period.

ie MindArk guaranteed that no further licences would be issued within 2 years of the sale of the original licences in January 2007.

The licences have no expiry date.

There has been no published change to their ingame banking policy since that time.

It will be interesting to hear MA's answer for sure.

Also, has anyone thought of trying to have a commodities market like there is with futures in oil, corn, etc?

strategist2 said:

The banking licenses issued were for 2 years and those are now expired. Now the question is does peer to peer lending in Entropia violate the EULA or not.

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Yes, you have a valid point. Those licenses must have expired by now. Those were the ones granting exclusivity so to speak.

MA made that statement at that specific point in time as it might have jeopardized the sales of the bank licenses if everyone had just chosen to go the Akoz way. Now, on the other hand, we`re very living different times.

Out of 5 bank licenses just 4 opened(Wirecard bank didn`t take off for reasons unknown), Argus bank is being sold off atm, Moneta bank is closed, Argus bank had periods of inactivity as Anshe(the owner) has repeatedly tried to sell it, Neverdie bank ran out of cash more than once.

As I see it, having another loan service(besides these 2 semi-active banks we have going atm) is great for the economy.

MA's response

"Hi,

Thank you for your inquiry. Unfortunately loaning services are not allowed, because we can not verify if it was meant to be a trade or if it was possibly a loan of an item; for us a trade is always a trade and nothing else.

As long as scammers take advantage of other people misplaced trust, and continue to rob honest participants of their virtual assets, we need to keep a strict policy regarding loans. Its important for all participants to keep in mind that we can not offer assistance if a person gets his/her items stolen through such an arrangement. And this is also why we have introduced a safe system (the bank system) to ensure that participants can do bank business without having to fear the loss of virtual assets."

I guess that means that no Peer to Peer lending of PEDs is allowed. Such is life. LOL

Stryder

Ahh, well. It was a good go at trying to start a business, anyway. Maybe you'll find another niche.

Mikass said:

Yes, you have a valid point. Those licenses must have expired by now. Those were the ones granting exclusivity so to speak.

MA made that statement at that specific point in time as it might have jeopardized the sales of the bank licenses if everyone had just chosen to go the Akoz way. Now, on the other hand, we`re very living different times.

Out of 5 bank licenses just 4 opened(Wirecard bank didn`t take off for reasons unknown), Argus bank is being sold off atm, Moneta bank is closed, Argus bank had periods of inactivity as Anshe(the owner) has repeatedly tried to sell it, Neverdie bank ran out of cash more than once.

As I see it, having another loan service(besides these 2 semi-active banks we have going atm) is great for the economy.

Click to expand...

Maybe we some clarification is needed about the banks.

Wire Card never opened. I talked to the Wire Card people in Second Life about the bank here in EU and the impression I got was that they paid the intial Auction amount to buy the License but actually had no intention of opening the bank. The 60k+ us$ was more of an advert or PR thing for them than a serious ingame investment.

Moneta Bank is open. The current rate is 39.99% per annum with a 1 day term. Open but not acutally in business i suppose you could say. I did talk to the fellow that represented that bank and he was somewhat discouraged by the lack of support by MA and like most of us that opened banks were hit by every immaginable pile of crap item that could be hoarded and "sold" to the bank for a few pecs seller profit. In my case I was naive about some items and had a good deal of misplaced trust in crafters. Moneta learned the same lesson.

Argus Bank has been subject of some drama and forced closure by MA. I don't know the exact details of what happened but it caused Jolana to reconsider his investment in EU. So Fort Argus Bank is closed.

Neverdie Bank is open but the rate is 99.99% for 30 days. This is a bit high in my opinion. If I were to close out our bank this is a similar rate I could charge. So I think you can pretty much consider Neverdie's bank closed.

Anshe Bank in New Oxford has been on Auction once. I could tell you the whole gruesome story but I have gone over this before. Short version is that Anshe was irritated with the inability or unwillingness of MA to communicate so as her frustration increased she did what she had to do to get their attention. I'm not so sure this was successful and by no means was the right thing to do for the people involved but she did it. That is the only time the bank has been offered for sale. There have been offers to buy the bank license and some rumors of a sell out but the bank is not at this moment for sale. Our rate is 29.99% for a term of 30 days.

For all of you that use our bank we do appreciate your business and continued support.

Aura Lily said:

Neverdie Bank is open but the rate is 99.99% for 30 days. This is a bit high in my opinion. If I were to close out our bank this is a similar rate I could charge. So I think you can pretty much consider Neverdie's bank closed.

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Since Neverdie had to give up his avatar as he is now a Planet Partner with Neverdie Studios, that puts that bank's future in a really awkward situation I think...

Yes, lending is not officially supported, but on the other hand H&R Circle has been around for years... 711 has been selling ME for EF dollars for years... Nihilist is now trying to sell EPD for sales in his fund's shop at Deer mall, and still doing some consignment deals I think, as are many other shop owners, and the Entropia Investment Fund's Mall Shop is still open and has lots of it's member's stuff in it on consignment too... so even though the official support is not there for lending stuff, it looks like some are still doing this sort of thing often and regularly.

Aura Lily said:

Argus Bank has been subject of some drama and forced closure by MA. I don't know the exact details of what happened but it caused Jolana to reconsider his investment in EU. So Fort Argus Bank is closed.

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It was also on sale here in forum as a selling thread and in the in-game auction. Probably still is on sale unless i missed something.

actually the way around the whole ban on loaning is to do "secured pre-sales" of ammo, bombs or probes.

Thread closed by request of thread starter