Fwurg

[Chancellor Dewa Lanadi]

Dear Dareal Noxim,

In your most recent request, which was at first misfiled as an archived request due to being sent as a reply to an older holomail exchange before being routed to my office, you state that the Praetorian Empire wishes to sell another 2000 in exchange for 2000 .

What you request is a total conversion for the Praetorian Empire of 2500 , which is beyond our current market capacity. Because of this, and the lack of advance notice of intent, we will not be able to guarantee conversion and calculate a 5% commission.

I can offer you a a choice of terms:

• An exchange of 2000 for 1900 (5% commission),
• The agreement will run for 20 , starting 252,
• The Veolian Commonwealth has the option to cancel the agreement with a 1 notice

Or:

• An exchange of 2000 for 1800 (5% commission, +100 fee for guaranteed conversion),
• The agreement will run for 20 , starting 252,
• The Praetorian Empire has the option to cancel the agreement with a 1 notice

I am confident that you understand our need to both recuperate our investments in the Kelwaraan Bank, as well as cover a certain amount of risk that other agreements fall through. As you can see, in the alternative terms we guarantee conversion at the stated rate. We charge a fee of 100 for this, as we run the risk of having to compensate any cancelled agreements out of our own economy, which will significantly hurt our future growth.

I look forward to your decision.

Sincerely yours,
Senator Dewa Lanadi

[Dareal Noxim]

Dear Senator Dewa Lanadi,

Thank you for your offer. This gives us some insight in your situation. However both the offers you propose are not what we intended. We are not willing to pay such a large commission. We already pay the fee when we buy the . We would like to know the options for an equal exchange. The addtional 2000 converted was the maximum that we wanted to convert and as we expected this was nearly impossible.

Therefore we would like to know how much your faction can convert and when your faction can start. When we say as soon as possible, we understand that for your faction, this could be in 5 . Since we agree that a notice in advance is reasonable.

For example we could work with 1000 for 1000 starting in 2 turns or 1500 for 1500 starting in 5 .

We never intended to put your economy at risk, we only want to explore the options to find out what is reasonable.

I am sorry for the misunderstanding. This is one of the disadvantages of holonetmail.

We hope to hear from you soon.

Greetings,
Dareal Noxim

[Chancellor Dewa Lanadi]

Dear Dareal Noxim,

I understand your surprise at this level of commission. Unfortunately, we are now approaching the point where we can no longer increase our banking capacity in the Smi-Halek system. Pressure to sell real estate for repurposing is mounting; our banking industry is barely breaking even, while taking up valuable real estate that could be used to boost production in the system. Several solutions present themselves, but unfortunately none of these are without cost.

Additionally, the cost of establishing the banking corporation has not yet been recouped. While many worlds have been granted commission-free conversions, we have reached a tipping point where reducing our conversion capacity is quickly becoming our most economic option unless a revenue stream is created.

Rest assured that we will not reduce our conversion capacity below 1050 . But even so, the amounts you request in your reply will completely exhaust our capacity, and anything above 1050 can force us to exhaust our own credit reserves.

If you are interested in a commission-less exchange, I can offer you no better then following terms:

• An exchange of 500 for 500 (0% commission),
• The agreement will run for 40 , starting 256,
• The Veolian Commonwealth has the option to cancel the agreement with a 1 notice

I can offer this 0% commission exchange because this exchange creates a level of stability within our banking system, while offering us the freedom to step out of the agreement if necessary to fulfil our financial commitments. We will only cancel this agreement as a last resort.

If you are willing to pay a small commission of 2%, we are willing to commit to:

• an exchange of 1000 for 980 (2% commission),
• the agreement is guaranteed to run for 20 , starting 257

We can guarantee this duration, but no longer, by addressing our own reserves if our agreements fall through. It is possible that we will have relocated several of our banking complexes and data centers to other locations when this agreement terminates. I suggest we renegotiate at that moment.

I look forward to your reply.

Sincerely yours,

Senator Dewa Lanadi

[Dareal Noxim]

Dear Senator Dewa Lanadi,

We accept your second proposal:

an exchange of 1000 for 980 (2% commission),
the agreement is guaranteed to run for 20 , starting 257

We will start transfering the in 257.

Greetings,
Dareal Noxim

Dear Senator Dewa Lanadi,

We hereby give you our official notice to cancel our credits aquisition:

We cancel this deal:
A continuous trade starting in 201, with a cancellation period of 4 . The rate will be 500 / in exchange for 515 / is preferable for us.

Our last transfer of 515 will be in 256.

Greetings,
Dareal Noxim

((OOC: For convenience: Old agreement 500 credits for 515 tax))

[Chancellor Dewa Lanadi]

Dear Dareal Noxim,

We have received your acceptance of our second offer, and we will start transfering the in 257. We also received the cancellation notice for one of our previous deals.

Unfortunately, your cancellation brings us to the point where we are positioned to exchange 2000 . As explained in my initial offer, this comes with certain risks attached that are not covered by a commission of 2%.

This goes directly against your earlier claim "We have no interest in cancelling the previous deals and would like to continue paying the 15 transaction fee for the full duration of this exchange to keep the opportunity open to change the deal at a later moment to only the initial deal of 500 from your faction for 515 ." I am sure this is an oversight, as you yourself said that you never intended to put your economy at risk. Even so, you have put us in a position where we can no longer guarantee our commitments without pulling from our own economy. This forces my hand.

I hereby give notice of cancellation on our existing deal of 1000 for 1000 . Our last transfer of 1000 will be in 256.

Sincerely yours,

Senator Dewa Lanadi

((OOC: For your convenience: old agreement.

If it was not your intention to go directly against IC claims and this was an OOC oversight, let me know and we'll sort it out OOCly.

Some explanation that might be handy to understand the Veolian reaction: Right now my faction is rather annoyed that their nearly-free service is taken for granted, and that they are immediately played for fools by making an agreement and then being put in a financially untennable situation because the other party immediately breaks their promise.))

[Dareal Noxim]

Dear Senator Dewa Lanadi,

We apologize for the misunderstanding. We are actually paying a transaction fee of 20 under your new deal.

Since the 15 was a transaction fee we had no problem to continue paying that transaction fee under the condition that we could exchange the back to at a 1:1 rate. Since you responded with literally hundreds of in commission we refused your offer:

Thank you for your offer. This gives us some insight in your situation. However both the offers you propose are not what we intended. We are not willing to pay such a large commission.

When your faction came with a different offer the old statement of the refused deal was no longer on the table.

The only thing that our faction wants is a clean slate and a reasonable commission. Whether we buy or sell should not matter.

For future agreements we propose to keep things more transparent for both of us. For us this means having only one continuing credits exchange deal at the time at any giving moment. This means no buying and selling deals at the same time with a transparent transaction fee.

We understand your reaction and already recognized this option in our calculations.

Unfortunately it still continues to be hard to get insight into the capacity that your faction has to offer at a certain moment.

If I am correct we will only be selling 1000 to your faction at a commission of 20 . If this is the capacity your faction can afford we will use this in the calculations for our short term plans.

We would like to have a confirmation that this is indeed the capacity you can reserve for us, could you elaborate on this?

Finally we will stop to propose additional stacking transactions since this clearly does not work in a situation like this. Could we meet and talk about this matter in person to smooth out these potential problems in future transactions?

Greetings,
Dareal Noxim

[Chancellor Dewa Lanadi]

Dear Dareal Noxim,

It is clear that there has been some miscommunication on the structure of payments, fees and commissions. And I much appreciate your proposal to meet in person to discuss the matter for future deals. I suggest that we meet in Purgatory to discuss the matter.

As to giving a clear amount of available capacity: the problem om our side is that an exchange of credits affects not only the trade between our worlds, but also our financial position, and the transactions we run with other worlds. The high level of uncertainty in both demand and duration make it difficult to provide a clear amount of available capacity. I agree that we must investigate options to more clearly present this information to others.

Furthermore, given both our cancellations, the clean slate situation will be achieved in 257. At that moment there is only a single transaction on between our worlds.

I can confirm that we cannot reserve more than 1000 for the Praetorian Empire, which effectively exhausts our guaranteed conversion capacity after downscaling because of the losses our banking corporation is incurring.

Sincerely yours,

Senator Dewa Lanadi

((OOC: I suggest that we discuss the issue between ourselves OOCly during the upcoming write-a-thon ^_^))

[Dareal Noxim]

((OOC: I agree))