Quote from: maqifrnswa on April 27, 2014, 12:19:06 PM

There was an opportunity for LRM to come out in much better shape with the new contracts, but the opportunity was blown and LRM at the moment is dead in the water. Since LRM is surprised people are upset, I'll explain it in simply.

Prior to the new contracts, customers were turned off by the lack of transparency. No one knew what was being done with their investments. There was a mysterious management fee that was never defined (neither how big the fee was or what it went for). This lack of transparency and support was evident by LRMs lack of ability to raise further funds. (the pricing of those second round securities was poorly chosen, shockingly poorly chosen)

The solution is to replace everything with a nominal (and essentially zero) minimum hashrate per bond, and replace payouts with a mysterious "bonus" which is also not defined. Even if you have the best intentions in the world, financial agreements do not run on best intentions. They run on what is in the contract. The contract only says people will get 100 MH/s, so no matter what you say - or what history you give, the valuation of the security will be severely deflated. Add this to the history of changing rules midgame, and now using extortion to get people to agree to the new format (I won't give you proceeds from hardware you purchased unless you agree to this new contract I unilaterally changed). Courts are not going to look favourably on that attempt at extortion.

Unless you release regular financial statements (like ognasty) so people can audit and calculate what their bonus should be and verify that they are receiving it, you're making people have to trust you in a way that they would not have when they first invested. There is no trust in business, just contracts.

No other security, or company, in the world bases a financial contract that is the foundation of their funding on "trust me." No serious money would touch it, they would laugh you out.

As others said, if you want LRM to raise funds in the future, and avoid getting sued by your previous funders, you have to act like a real company.

On top of it all, you blew a lot of customer's money (yes customers, since you probably didn't do any FFF, self-funding, VC/angel) on lawyers with someone that doesn't have corporate formation/financial instrument/SEC/IRS experience. He/she might have had one of those, but that contract looks like something they pawned off to the lowest intern - or something you wrote and asked them to edit.

Every single line of this, plus why do we not have the wallet addresses of ALL the mining proceeds... Trust? Have Faith? no way in hell I'm trusting anything that feels this shrouded.

zero factual info on hash and current state of investment is available in any of posts and you want us sign away our rights to litigation. If we question anything that makes us unreasonable?