Quote from: BBHex on July 13, 2016, 03:53:20 PM

Quote from: bapparabi on July 13, 2016, 03:40:17 PM

Quote from: pandalion98 on July 13, 2016, 03:35:32 PM

What happens when I have hashpower and that kind gets disabled?

For example, what happens to my S7 when it gets disabled and replaced by the S9? What if I don't have enough GHS to redeem a full unit?

you have the option the sell it s7 in market and use that fund to buy new s9 ..

Is it still able to be sold even it is removed or its just speculation? Because i don't think it can be sold or lets say no one will buy s7 if s9 is out

bapparabi is incorrect, he doesn't know what he's talking about.

You can find the information you are looking for in their ToS but basically it's like this: Once the S7 Hashes aren't profitable anymore, meaning that maintenance makes up 90% of profit (and we're at 75% already), they enter a 10 day redemption waiting period.

"If due to falling bitcoin exchange rate or increase in mining difficulty, the electricity fee is greater than 90% of mining revenues, mining contracts on Hashnest will enter a redemption waiting period."

During those 10 days, Hashnest evaluates wether to retire the machines or not based on how payout develops (Read more in the ToS). If the S7 becomes profitable again, the Hashes exit the redemption period and mining continues as usual.

HOWEVER: During those 10 days of waiting, you CANNOT trade your Hash any longer, as it becomes locked from the market. ("During this time HASHNEST will halt trading on the GH/s exchange, hasrate transfers and cancel any unfulfilled orders.") Meaning that you CANNOT sell your shares AFTER they have entered the redemption waiting period. After those 10 days, Hashnest may retire the machines altogether:

"During this waiting period, if electricity fees are greater than revenues for a sustained period of ten continuous days, Hashnest reserves the right to retire the machines. When machines are retired, a users contract will then enter into the hardware redemption period."

During this period, users have the chance to claim their machines provided they have enough GHS:

"During the hardware redemption period, users are given a period of 7 days during which requests for hardware redemption must be made."

and

"Customers holding enough GH/s to constitute an entire machine of the associated type (e.g., 4860 GH/s of Antminer S7) are eligible to convert that amount of GH/s into the used unit of the associated type. If a user does not have enough GH/s of the associated kind to exchange for actual hardware, then this user is not eligible for hardware redemption."

This means that your shares are gone and useless if you have fewer than 4860 GHS. If you do have enough Hash for one (or more) machines, then you have the option to have them shipped to your address, HOWEVER there is a 50$ transaction fee involved PLUS shipping from China per machine, so getting those S7 back to you will require time and more money. ("Handling fees are set at US$50, and domestic Chinese shipping (including to the export) and international shipping fees will be collected according to the actual charge.")

So it's questionable whether getting those S7s to you is worth it at all, at least when you intend to use them for mining. It may be worth it to sell them on ebay or other second hand platforms though, as those machines are usually overpriced on those sites.

All in all, you want to be careful the next few weeks. As I've said, we're already at 75% maintenance/payout and Bitmain said the S9 will come to Hashnest soon. I reckon they are waiting for the S7s to become obsolete first and if the price doesn't stay level or go up, this might be very soon. A lot of cloudminers will end up with useless Hash and lose a lot of their investment due to S7s becoming obsolete soon.

In anticipation of that crash and as a result of the halving, a heavy devaluation of GHS shares has already occured. We had a dip to 8k sat / GHS a few days ago with a slow recovery back to 11k+ (Price pre halving: 13k-14k). Today we're seeing another dip to 9k sat / GHS with ongoing downwards momentum, maybe as a result of the retreating bitcoin price in the last 10-12 hours a lot of cloudminers may be fearful of that inevitable crash, especially when considering that the block finding luck today has been unfortunate as well.

Take care!