Tue Nov 10, 2015 5:16 pm

Hi Joe.



Thanks for doing this. Magnr looks very interesting. I think you guys are definitely filling a gap



1)You offer deposit interest. Do you also lend? If yes, at what rate do you lend? Do you do this on an account by account level or wholesale...eg, lend on BFX using a corporate account?

2) You say 100% reserves; is this necessary? What percentage of your coins don't move on a day2day basis?

3) Trading strategies. Do you allow people who want to trade but don;t know how to trade to invest in a managed trading product? Do you offer a fund option?

4)What does the name mean? ...Manager; how does it inspire trust?

5) Size wise, how much coin are you guys managing?



Thanks in advance,



Kyle Kemper

@kylekemper

Thanks Kyle,1. & 2. We do not engage in public lending activity, nor do we trade bitfinex swaps. Our model requires us to have cash collateral on exchanges to allow trading to route through our platform. This is where we generate interest (from our leveraged trading positions). Prior to introducing our savings accounts, all bitcoin collateral was provided privately. Clients should be aware that 100% reserves refers to full cash collateral being held for all deposit amounts.I won't say too much about this for competitive reasons but we have private arrangements with the companies we work with to ensure that counterparty risk for everyone can be minimised. (Protecting our clients during the MtGox fallout was not easy to say the least)3. The thought has crossed my mind, especially when I used to run trading algorithms, perhaps if there is enough interest, we would think about a 'managed investment' type trading product. This is something which would carry a huge level of risk though!4. Our name is inspired by the wordits the latin word for5. I won't post that here but I will reveal that we'll soon be putting figures like AUM on our site to increase our transparency soon. Watch this space.