Loan Contracts that actually work - an idea

[Hidden_Markov]

@Arronicus

The risk/reward is all wrong. Say you take out a loan for 50 billion isk, and you make a good investment, you make say, 10 billion off of it, great. You’re ahead 10 billion. But if that investment goes sour, which can be for reasons entirely out of your control, and you lose 10 billion, you’re not now 10 billion short. You’re short YEARS of skill training, to the tune of all the SP it cost to collateralize the loan, and even if it’s fragmented, you’re down the 10 billion worth of SP. Replacing that SP would cost far, far more than 10 billion, for an older character like myself who gets very little isk from injectors.

Potential abuse also is those who don’t care if high sp, or they use a high power alt.

If for example a crash hits the injector market and I gave up an alt to get the loan…well the loaner can keep the sp. Case of one alt its just I don’t want to plex the 5 injector deal to drain rhea/charon skills.

PLex I have is saved up since I already am in skin hell for limited time now gone while I was in WoW. What I have I keep for the next skin(s) I would not let get away lol. Not trying to feed the plex beast here. They got some money…but I ain’t that nice.

Pretty sure I will never run these again. If on the hook, market goes bad…enjoy them good sir. I didn’t lose money in the deal, probably “made” more. And you get to wait weeks to months for this rebound. PLeasure doing business with you…

You see this why in older threads famed money people in similar threads explained why they’d not laon out isk. For even t2 bpo collateral. 1 month later…a patch nerf, doctrine meta change and even a t2 ammo bpo appraised at 20 billion is now appraised at 15. That lendor lost 5 billion due to market change.

Example chosen as some think t2 bpo’s are licenses to print isk. Think it was grendel(?) or darkside(again ?) said they wouldn’t touch it with a 10 foot pole. 1 player meta or CCP made change…they lose isk.

[Skyler_Eva_Luther]

@Arronicus

The maximum amount of isk you can borrow is capped by your skillpoints. This means a very wealthy player with only say, 30 million skillpoints, is limited to borrowing much smaller sums of isk, even if they have vast sums of isk in eskrow and assets.

That would be true yes. The power of ISK kinda loses its meaning here, since that is what is being loaned, so you need another commodity to cover it. I’m not sure if this capping is inherently a bad thing, though.

@Arronicus

it hard caps the amount of isk that you can borrow, to the amount of unnecessary skillpoints you have.

Also true. This is more of a problem that I agree with too. One person suggested earlier that while the loan contract is active, the debtor wouldn’t actually lose the collateralized skillpoints while the loan contract is active. That may counter the issue, and I don’t see ways to abuse it so far, but I still need to think about it.

@Arronicus

The risk/reward is all wrong. Say you take out a loan for 50 billion isk, and you make a good investment, you make say, 10 billion off of it, great. You’re ahead 10 billion. But if that investment goes sour, which can be for reasons entirely out of your control, and you lose 10 billion, you’re not now 10 billion short. You’re short YEARS of skill training, to the tune of all the SP it cost to collateralize the loan, and even if it’s fragmented, you’re down the 10 billion worth of SP. Replacing that SP would cost far, far more than 10 billion, for an older character like myself who gets very little isk from injectors.

Oddly enough I didn’t think about that It should’ve been obvious. This is quite a problem of this idea. There seems to be only one solution as a basis:

• The total amount of lost skillpoints from the loan contract is compensated fully without diminishing returns, when using skill injectors.

This could be abused, but there is a fix.
After you default, you receive a pop up window, for example:

"Oh no! You have defaulted on your loan contract and have lost 950,000 skillpoints!

The affected skills are:
Biology: 500,000 skillpoints
Hacking: 450,000 skillpoints
Would you like to insure these skillpoints? Using skill injectors will have no diminishing returns and will automatically refill only the affected skills of your choice in preferred order.

This offer lasts for 3 days, starting now.
This offer can be found in your Finances menu.

Your character will be unable to accept a loan contract, while the insurance or insurance offer is active.

[Yes]___[Not now]"

Then the player chooses the insurance plan. It will be in terms of time:
day, 3 days, week, month, or 3 months.

Longer periods costing more ISK. They shouldn’t be too expensive either.

Using two large skill injectors will give 500k and 450k skillpoints, covering the affected skills in this example, and diminishing returns kick back in.
If there is surplus of skillpoints even after the diminished returns kicked back in, they will be put in to your unallocated skillpoint pool.

The offer may at most be prolonged by not logging in to the character, in case the character defaulted on the loan while being logged off, but that is not a problem. The main idea is to prevent people from using alts to purposefully default on each other to stack up a compensation skillpoint pool, so they could avoid diminishing returns in the long run.

Thoughts?

[Daichi_Yamato]

@Arronicus

The maximum amount of isk you can borrow is capped by your skillpoints. This means a very wealthy player with only say, 30 million skillpoints, is limited to borrowing much smaller sums of isk, even if they have vast sums of isk in eskrow and assets.

That’s a blessing.

Stops new players borrowing too much.

The same would be collateral for any loan/contract.

@Arronicus

The risk/reward is all wrong. Say you take out a loan for 50 billion isk, and you make a good investment, you make say, 10 billion off of it, great. You’re ahead 10 billion. But if that investment goes sour, which can be for reasons entirely out of your control, and you lose 10 billion, you’re not now

So a big reward comes with big risks. That sounds exactly as it should be.

Don’t want to risk the SP? don’t take the loan.