What is a Payout Accelerated Cloud Mining Contract (PACMiC)?
The PACMiC is a new value-added cloud mining service
product from Hashnest. The PACMiC is an electronic contract structured in a new
way. BITMAIN will pay all the maintaining cost of the mining rigs, and all the
mining revenue will be used to pay back the PACMiC owners. When the principal
is not fully paid back, it will share profit with buyers. When the principal is
paid back, the mining rigs will belong to BITMAIN. Both principal and profit
payments will be made to the contract holder based on the mining revenues of
AntPool. Since PACMiC will not bear the maintenance cost, so the payout is
accelerated.
Purchasing a PACMiC
In the initial sales open day, one PACMiC will be sold
for one (1) bitcoin. Each PACMiC represents one terahash of hashing power. The
contract will become active immediately upon receipt of full payment.
Computing principal and profit of an PACMiC
As soon as the PACMiC is activated, payouts will be made
through Hashnest in accordance with the mining revenues generated by AntPool’s
PPLNS payout method. Profit payments will be made beginning with the first
block found by AntPool after the contract’s activation. From the first block
until the contract’s expiry, profit will be accumulated every second.
Profit Calculation Method
Unpaid principal (BTC) * 0.7 (satoshis per BTC per
second) * time to find a block (seconds)
For every block found, the remaining payout after the
profit is paid will count towards the principal payment. After each principal
payment is made, the amount is subtracted from the amount of remaining
principal.
Please note: information on blocks found will only be
transfered to Hashnest.com from AntPool after receiving six network
confirmations. Because of this, profit and principal payments will be on a
slight delay from the network.
Contract Suspension
If after 120 days, a PACMiC has still not recovered the initial capital for its user, and is not mining enough revenue to
pay for its own electricity cost (fixed at 0.098 USD per kWh, calculated using
an ideal AntMiner S5 hashing at 100% uptime per PPS payout), whether because of
difficulty increase or BTC price decrease, the PACMiC will continue paying out
for ten days as though it were running, even if the machine is turned off. If
these conditions persist for ten continuous days, the contract will be
considered temporarily suspended. During the suspension period, mining revenues
and profit payments will also be temporarily stopped. If after the suspension
period, difficulty has dropped or bitcoin price has risen, making mining
possible again, the contract will be reinstated and pick up where it left off.
Contract Expiry
The contract expires at the moment that the principal has
been paid back in full.
BITMAIN may pay extra Bitcoin to the owner of PACMiC
before the principal has been paid back in full, which will accelerate the
payout even more.
FAQ
Q: Can the PACMiC be sold or transferred to other users?
A: No, PACMiCs may not be traded on the exchange.
Q: Do PACMiCs deduct electricity and maintenance fees?
A: PACMiCs do not deduct electricity or maintenance fees, the payment of which is
assumed by BITMAIN. All mining revenue from the contract is used in the
repayment of principal and in making profit payments.
Q: Can I redeem my PACMiC before contract expiry?
A: No. The contract will be closed automatically at the
time that the principal has been repaid in full. Contracts may not be
terminated prior to this.
Q: What is the repayment period to profit ratio like?
A: The repayment period is dependent on the
difficulty level of the Bitcoin network. Assuming a stable network difficulty,
the PACMiC initial cost can be paid back in approximately 105 days. Estimated
annualized return on investment is 22%. ( (0.7*10^-8)(36524*3600)=22%)
However, due to the unpredictable nature of the network
difficulty, it is impossible to accurately predict the exact length of time
repayment will require.
Since releasing our first product in November of 2013,
Bitmain has always concerned itself with ensuring that users are able to earn a
profit and that payout amounts are accurate. Trustworthiness is a cornerstone
of our reputation.
Q: If AntPool experiences bad luck, will this affect profit payments?
A: Profit payouts are calculated using the amount of unpaid initial cost, and are
unrelated to the pool luck of AntPool. Changes in pool luck will affect the
speed at which the cost is repaid.
Q:How does the user make profit?
A:Profit is calculated by the formula: unpaid principal
(BTC) * 0.7 (satoshis per BTC per second) * time to find a block (seconds).
Mining revenue will be prior to pay for the profit, the remaining of mining
revenue will be paid for the principal.
Q:When does the user start to get the profit? Where does the profit go?
A:Profit begins accumulating when the first block is found after contract activation. Profit will be paid to user’s wallet on Hashnest.com
Q: How much the customer can get after the contract expires?
A: The principal plus the profit. However, the profit cannot be determined before the
contract ends.You can find more info at Q: How
does the customer make profit?
Q:When does the contract end?
A:When the principal is paid back in full.
Q:Is the PACMiC really risk-free?
A: Like all forms of bitcoin mining, there is a certain
level of risk involved. If network difficulty unforeseeably skyrockets, or if
the price of bitcoin drops too much, the Antminer S5 units backing the PACMiC
may not be profitable to run and be forced to go offline, in which case
contracts would be suspended (possibly indefinitely) and the user may not
recover the initial cost of the miner. However, the AntMiner S5 is currently
the most power efficient bitcoin miner available on the market, and would be
among the last to be forced to power down under unfavorable market
circumstances. It is our comprehensive evaluation that the likelihood of PACMiC
holders not recovering their initial cost is indeed quite low. We ask that all
users please understand the risks inherent to any sort of bitcoin mining, and
also to understand that there is no such thing as a risk-free product.
