Jump to content
Twarden

XAGATE: Precious Metals, BTC, LTC, NXT, ETH, and CAD

Recommended Posts

Just an advise: it is not a good idea to have such high fees for a starting gateway. People will hardly use it if there are other well known gateways with lower fees. This is valid for XAG, XAU, USD and BTC. For services that are not explored by other gateways (ETH, NXT, ...) that may be fine, but still 0.75 ETH = 5 USD is an high withdrawal fee.

2nd advice: I personally don't like the blog-style layout. It doesn't look like a professional website where to trade my money. But this is just a personal idea.

Edited by tulo

Share this post


Link to post
Share on other sites
1 hour ago, tulo said:

Just an advise: it is not a good idea to have such high fees for a starting gateway. People will hardly use it if there are other well known gateways with lower fees. This is valid for XAG, XAU, USD and BTC. For services that are not explored by other gateways (ETH, NXT, ...) that may be fine, but still 0.75 ETH = 5 USD is an high withdrawal fee.

2nd advice: I personally don't like the blog-style layout. It doesn't look like a professional website where to trade my money. But this is just a personal idea.

I will take you suggestion under advisement an reduce the deposit fees for the precious metals (other than silver) to 0.0499%. The new USD Gateway's fees are higher than I would like to be.  I have monthly and per transaction overhead to cover an I must earn some revenue as well, therefore the 5$ fee has to remain as is.  When I was doing my calculations for the new ETH withdrawal fee yesterday I took into account the transaction fee of 0.42 ETH with revenue equal to ~1.90$ when the price of ETH was at ~6.30$, but since ETH has seen some more pump action, I have lowered the fee to 0.66 ETH to reflect the further rise in value.  The deposit fees for cryptocurrencies will be lowered in the near future with the implementation of a new back-end service for managing inbound and outbound payments.  

As for the new site layout, I preferred my old twitter bootstrap layout,  I had received feedback (on more than one occasion) that XAGATE seemed like a scam due to the site being "too simple" hence the update. 

Edited by Twarden

Share this post


Link to post
Share on other sites

I don't see anywhere anything about demurrage or ongoing fees for storage for the precious metal assets? Any appraisal fees? Certificate issuance fees (I assume the IOU takes this place)?

If that's the case you might be able to make a case for higher deposits/ withdraws. No demurrage/ storage/ service/etc. fees. Just the basic in/out fees with no additional hidden costs that might erode the value (outside of market rates) of the stored assets.

It will make a direct comparison of fee structuring more difficult, but if articulated it might be justifiable (and perhaps a selling point?).

Share this post


Link to post
Share on other sites
3 hours ago, Mercury said:

I don't see anywhere anything about demurrage or ongoing fees for storage for the precious metal assets? Any appraisal fees? Certificate issuance fees (I assume the IOU takes this place)?

If that's the case you might be able to make a case for higher deposits/ withdraws. No demurrage/ storage/ service/etc. fees. Just the basic in/out fees with no additional hidden costs that might erode the value (outside of market rates) of the stored assets.

It will make a direct comparison of fee structuring more difficult, but if articulated it might be justifiable (and perhaps a selling point?).

Yes, you are correct, we do not charge demurrage or storage fees for our precious metal IOUs.  However, we do charge the Claimant the shipping expenses for precious metal withdrawals.  We do not charge a transfer fee for usage of our IOUs over the Ripple Network; We only charge service fees on deposits and withdrawals.  Our settlement fees are based upon per transaction fees, monthly overhead, plus a margin to generate revenue.

To be entirely clear about our Silver Gateway, there is a discount for processing orders which are not processed through ordering silver via a credit card from a bullion dealer directly to us for processing which incurs a 2% fee on the total order. instead, we charge a flat rate of 0.02 XAG per ounce.  This policy is due to possible credit card fraud issues (which I have luckily yet to encounter) an I believe that those who have a personal silver stash deserve a flat rate fee when inputting their XAG into the Ripple network.

Edited by Twarden

Share this post


Link to post
Share on other sites

You should make that known in your fee section if not already, so customers can see / compare fees / storage

3 hours ago, Twarden said:

Yes, you are correct, we do not charge demurrage or storage fees for our precious metal IOUs.  However, we do charge the Claimant the shipping expenses for precious metal withdrawals.  We do not charge a transfer fee for usage of our IOUs over the Ripple Network; We only charge service fees on deposits and withdrawals.  Our settlement fees are based upon per transaction fees, monthly overhead, plus a margin to generate revenue.

To be entirely clear about our Silver Gateway, there is a discount for processing orders which are not processed through ordering silver via a credit card from a bullion dealer directly to us for processing which incurs a 2% fee on the total order. instead, we charge a flat rate of 0.02 XAG per ounce.  This policy is due to possible credit card fraud issues (which I have luckily yet to encounter) an I believe that those who have a personal silver stash deserve a flat rate fee when inputting their XAG into the Ripple network.

 

Share this post


Link to post
Share on other sites
On 03/03/2016 at 7:15 PM, rippleric said:

You should make that known in your fee section if not already, so customers can see / compare fees / storage

 

This knowledge has been omitted from our Terms of Services' fee schedule section since we never apply  demurrage/storage fees or intend to;  I have updated the fee schedule section to display that we don't charge demurrage/storage fees.  

EDIT:  

ETH has continued to see some more pump action; I have lowered the withdrawal fee again down to 0.60 ETH.

If you are using Safari and have an issue with visiting the site, either of these fixes:

First, try to clear both your cache and cookies and try to visit the site again. 

The issue may be that the server does not recognize the client which is why you are experiencing this error. You may want to delete the certificate you already have in your keychain: http://apple.stackexchange.com/question ... ertificate

Safari may not have the the certificate authority's root certificate added to it, so add it an see if you can then connect to the site:
https://support.apple.com/kb/PH18677?locale=en_US
https://knowledge.rapidssl.com/library/ ... oot_CA.pem

I don't have access to iOS so I can't really test this issue myself. Try to use a Firefox or Chrome browser instead. Safari is a KHTML browser an its inner workings are different than other web browsers.

Edited by Twarden

Share this post


Link to post
Share on other sites

This is totally random, but I have always been curious about this in regards to direct deposits via precious metals- is there preferred supplier/ appraisal? It's my understanding that precious metals come in various grades of quality/ purity, and that some minted coinage is more preferred then others. A Canadian Silver Maple Leaf may be more valuable then a Silver American Eagle, even if the weight is the same. Never mind 'pure' bullion bars vs. minted coinage (which may be sealed and value assured).

How does a gateway accommodate differing values, especially for traders who deposit a high quality coin and would want access to the same on withdraw? Do you go simply by weight regardless of mintage? Is there a threshold of quality/ purity?

I recall there was a gold dealer on ripple who only dealt in Gold Maple Leafs, not sure if it was over purity values or not, but like I said- a random curiosity.

 

Edited by Mercury

Share this post


Link to post
Share on other sites
2 hours ago, Mercury said:

This is totally random, but I have always been curious about this in regards to direct deposits via precious metals- is there preferred supplier/ appraisal? It's my understanding that precious metals come in various grades of quality/ purity, and that some minted coinage is more preferred then others. A Canadian Silver Maple Leaf may be more valuable then a Silver American Eagle, even if the weight is the same. Never mind 'pure' bullion bars vs. minted coinage (which may be sealed and value assured).

How does a gateway accommodate differing values, especially for traders who deposit a high quality coin and would want access to the same on withdraw? Do you go simple by weight regardless of mintage? Is there a threshold of quality/ purity?

I recall there was a gold dealer on ripple who only dealt in Gold Maple Leafs, not sure if it was over purity values or not, but like I said- a random curiosity.

 

For your question of weight, we accept deposits of precious metals which are at least 1 troy ounce of .999 finesse precious metal.  For those who deposit fractional rounds, such as the 1.5ozt Polar Bear, the client will receive their IOUs an will be able to request their fractional rounds upon their next withdrawal.  We do not segregate physical silver into an account for each person, all silver is available within a single pool of funds for withdrawal by any individual that holds the digital warehouse receipt for silver on deposit,  therefore the availability of high quality coins may not be able to be claimed by the original depositor upon the time of their next withdrawal.  

This case would only occur when:

  • Alice deposits 6 1.5ozt Polar Bears (9 XAG)
  • Bob deposits 7 1.5ozt Polar Bears (10.5 XAG)
  • Bob trades another asset for Alice's 9 XAG
  • Bob requests a withdrawal of 19.5 XAG an indicates he wants to withdraw his silver in fractional rounds
  • The Gateway has no other silver depositors an the only stock are the fractional rounds, so it reserves the fractional rounds an begins to process the order
  • Jim deposits 10 XAG of J&M Silver Bars
  • Alice trades another asset for Jim's 10 XAG
  • Alice requests a withdrawal of 10 XAG an indicates she wants to withdraw her silver in factional rounds
  • The Gateway only has 1 ozt bars available, the operator notifies the client of the available stock an asks to continue to process the order or to notify Alice the next time 10 XAG (or closest to) of fractional rounds are available for withdrawal.

I suggest on the web site to make a purchase from silvergoldbull.com when using the credit card deposit method.  The Gateway deals with bullion no less than .999 of finesse.  In the case when a client deposits Maple Leaf bullion to the Gateway, the depositor can use the Comments field of the withdrawal form to indicate they wish for their IOUs to be exchanged for Maple Leaves.  As with fractional rounds, supplies may be limited or unavailable during the time a client requests their withdrawal, which will be entirely dependent upon the volume of XAG transactions we receive and process.  As with my example above, imagine that Alice and Bob both deposited Maple Leaves, Bob trades for Alice's Maple Leaves, the Maple leaves are in reserve because Bob requests a withdrawal, Jim deposits a lesser quality silver coin compared to a ML, Alice trades for Jim's XAG then requests a withdrawal.  Finally, since Alice indicated she wishes to withdraw Maple Leaves, the operator notifies Alice that Maple Leaves are not currently in stock an offers what is available or a spot on the notification list for when new Maple Leaves are deposited to the Gateway.

In summary:  Precious metals are not segregated per person by account, deposits are a pool of assets available for withdrawal.  First come, first served in terms of available supply; First come, first served in terms of the waiting/notification list for fractional, .9999 finesse coins, or 'higher quality' coins.

Edited by Twarden

Share this post


Link to post
Share on other sites

There was recently an internal policy update that affects XAGATE clients  concerning my own transparency practices for Gateway Audits which was originally meant to be a monthly affair plus I would like to address the community on the state of liquidity, market makers, and leverage within the following blog post released on the XAGATE site this afternoon.

XAGATE is a single operator branded Gateway and I consider this business to be a rare and professional exception in comparison to existing competition within this time period but I believe that it will not in the future; I do my best to remain professional within all of my work and interpersonal dealings as I attempt to prove to myself and the Ripple Community that this is a viable business model to support upon a voluntary basis as decided by the individual (a libertarian's dream!).  

I recently have noticed that when I have referred to the business that I have used the terms we, they, or other inappropriate contexts.  The corporation acts as the vehicle to host the XAGATE and RippleUnion Ripple Gateway issuances under one umbrella with a single operator which operates as CEO, secretary, and treasurer.  I outsource expertise as needed via conversing in private with individuals within the overall FinTech community so that I can seek to build solid partnerships and employment agreements as they become available simply by consensus.  

XAGATE Blog Post: Intra-Gateway Liquidity Offer Expired, Obligations Covered, and Leverage

Edited by Twarden

Share this post


Link to post
Share on other sites

Apologies for my inactivity within the forums for the past few months, here is an update on the progress of XAGATE and The Quick Gateway Kit projects.  For those who may not have read the news this past Summer that I had health issues which displaced me from my home after a stay in hospital.  I was lucky enough to make a great friend through visiting the hospital after my stay, so I am happy to announce that I have finally found a new home office to operate from on my own again.  

In addition to this success, I have signed a non-disclosure agreement with a company to secure a position named Vice President of Finance, CCFTD (Cryptocurrency and Financial Technology Development).  I continue to receive occasional emails from interested individuals in regards to the Quick Gateway Kit and my consulting services available.  Under the QGK project, I have decided to move away from as a non-profit en-devour as my focus has shifted towards serving the business to business industry.  

In regard to the XAGATE website, you may have noticed that I no longer advertise that I am remitting USD, this has been due to a lack of interest on behalf of the community.  I also have updated the site to reduce the amount of scrolling involved and to simplify the settlement process for users by clicking on a link which launches your email client with a form to fill out (please note that cryptocurrency deposits are still performed on site).

I now have a difficult discussion to begin in regards to the state of the financial regulations in Canada.  June 2017, as a money services business, I will be required to update the method in which I verify the identity of clients which are not conducted in person.  In June, I will no longer be able to accept clients' personal information and instead must use a third party who will collect information for identity verification.  I have a few options for how to setup this new verification system, however all of these options either include prohibitively expensive setup costs and per-transaction fees or an unsustainable increase to the monthly overhead expenses taking into account revenue generated from ongoing business operations coupled with my current web hosting expenses.  

Due to this situation, I have a few choices to make in regards to increasing revenue and minimizing expenses to remain competitive and in business.  At this time XAGATE and QGK are hosted on a dedicated server so that I can operate a rippled validator to assist the network, but I believe that it has now become financially unrealistic to be able to provide such support.  Therefore, I have decided to renew my current contract until the end of the year, afterward I will unfortunately migrate the sites again to a less expensive server so that the new compliance costs can be covered.  I was considering for a time to announce the closure of the CAD Gateway to not be subjected to the regulations as a money services business but I do not want to be responsible for creating a situation where there is a monopoly gateway, not to mention rendering the hard work of singpoylma and jlamothe (the prior operators) work moot.

Due to the upcoming implementation of this new KYC system's cost basis per-transaction, the flat rate fees for deposits an withdrawals will increase by 75 cents to 3.50$. Therefore I must advise individuals with less than 10 CAD to consider settling their CAD position however they wish before fees increase this Summer.  I will not be enforcing a transfer fee on any of the assets that I remit with this Summer's update

Share this post


Link to post
Share on other sites
2 hours ago, Twarden said:

Apologies for my inactivity within the forums for the past few months, here is an update on the progress of XAGATE and The Quick Gateway Kit projects.  For those who may not have read the news this past Summer that I had health issues which displaced me from my home after a stay in hospital.  I was lucky enough to make a great friend through visiting the hospital after my stay, so I am happy to announce that I have finally found a new home office to operate from on my own again.  

 

Good to see you again. I wish you well..health is the most important thing...the rest will follow. GL.

Share this post


Link to post
Share on other sites

Thanks @Malloy :) 

I wish that there was more time in the day that I could devote to the community in a more direct fashion like I have in the past but at least all is well now after I was able to relocate to an apartment to pay room and board until I could sign a lease at a new place. It was just a bonus that the family of this colleague I made acquaintances with has been working on a project which requires my skill set and services.  It was like I realigned with the Universe in a matter-of-fact kind of way to nudge me into a much better direction within my career as a developer in a perfectly mutually beneficial manner.

A user has emailed me in regards to an error with the SSL certificate when visiting https://xagate.com.  If you encounter this error, please send me an email at taylor@xagate.com with the name and version of your web browser and in addition please visit whatsmyua.com and copy and paste the data they provide.  This is a known issue with the Safari web browser which is due to missing Certificate Authority certificates;  I suggest to use the Chrome web browser when visiting xagate.com.  Please see the links in this post in regards to this issue.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...