If doing compounding interest, the break-even value is 0.9765


As far as I know, they are not using your money for the insurance, they are using their own.

If they invest all the 3113.95 they will get 4081.75 in four weeks. That's 1.36 per bond. After buy-back, they will have made (1.36 - 1.28) * 3000 = 240 BTC.

In other words, they are risking 0.32 * 3000 = 960 BTC, and if Pirate don't default they gets 240 / 960 = 25 % profit.