If bitcoin prices surge dramatically upward, this bond will default. For reference: every interest paying BTC bond ever. These type of investments require BTC price to be stable or losing fiat value. Want to make 12%? Sell your coins and wait until all the Chinese exchanges shut down at the end of January. Then buy at least 12% more BTC.
I think you are misunderstanding how this works. All investments are made in bitcoin, there is no FIAT risk. Bitcoin's value vs fiat is completely irrelevant for these bonds and our investment fund.
The people "investing" in you are also making their investment directly in bitcoin, with no fiat exposure. Unfortunately, both fiat and underlying assets enter into the picture at some stage, that's what makes this untenable. It's not turtles all the way down. Of course, empirical data confirms:
If bitcoin prices surge dramatically upward, this bond will default. For reference: every interest paying BTC bond ever...
This fund has no fiat exposure. I can repeat it again if you like.