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RE: Introducing SBBank: Earn interest on your Steem Dollars with SBD term deposits
I doubt how you can give 12% return... there is no instrument in the market that can do so.. the only way u generate this much return is by investing/trading in the market (securities, forex, cryptocurrency). All the low risk instruments (e.g. debt) offer less than 5% return (~8% if you are in countries like India); since you are proposing to convert deposits into USD the return is even less than 3% for debt instruments...
But I wont doubt your intentions, just a word of caution to depositors that "investments are subject to market risk"
Sure, we're in a persistently low interest rate environment and no traditional assets offer this kind of return atm. We aren't operating in that sphere though, we are operating in the crypto sphere and there are opportunities around outside of speculation. Our revenue model works with an instrument that has been around for some time, but isn't open to everyone (US clients for example).
We don't take positions in the market, that should be 100% clear. Our performance will be correlated to the fate of Bitcoin (and the industry as a whole), though not cointergrated. Unlike a certain infamous "ponzi", we will still profit in down trends, but will likely see reduced performance. I'm not revealing any more as there's more than enough information there to work out our investment model if you're experienced in this space.
Do you guarantee 10-12% return or is it subject to certain terms and conditions which are ususally written in the smallest font possible and lightest color that is visible to the eyes?
Yes we guarantee those returns, if our performance disappoints we will have to meet these obligations out of our own pocket. We wouldn't take the risk without 99.9% confidence though. We might reduce or increase rates down the track once we have more hard data.
Sounds encouraging.. All the best
Thanks mate, you too :)