Of MFC token (storage) limits

[Zoomer]

Keep seeing this being brought up "they can't explain..." blah blah. So here's a perspective:

You buy tokens. You can buy tokens, and if in bulk, they're less than $0.08 per token. You can buy tokens and store them up to the tune of ... lets make some easy numbers, 500,000 tokens.

So you can spend up to $40,000 on tokens and save them up in storage. Those tokens are worth (to a model) $25,000 - meaning the site gets $15,000 or so. That $15,000 goes towards costs of running/wages/advertising - etc; everything left is pure profit.

So assuming the costs are a constant, until those tokens are spent you've got a profit of $40,000 minus running costs only; there's no payout to the model. Roll over a month, roll over a tax year, you've still got this "liability" of $25,000 outstanding and no knowledge when it's going to drop. And that's just with current limits...

I'd imagine if you can verify that you're going to tip within the same pay month they'll increase the limit for you. But otherwise, what's their motivation?

Imagine if there were no limits; could build up millions in tokens over several years and then drop them a $250,000 payout bomb in a single 2 week period that they may not have funds to cover immediately (no idea) - especially if several others did the same thing at the same time. The limits aren't there to mystically confound big tippers and create conspiracy, they're there as a reasonable (responsible) risk mitigation to their company.

Just a thought... of course may be utter bollocks, I don't do financials with a company. I just know that if i don't submit my expenses weekly, and certainly if they start going over month boundaries, they get very annoyed indeed. Something about blowing their forecasting and other stuff.

 

[Ambers Troll]

That $25,000 liability can drop at any time, but until then you can use it any way you please until it does. It is in effect an interest free loan, but you must repay that part of the principle the moment it is paid to a model.
Banks seem to do well enough out of holding our money for us until we actually spend it. I don't see them wanting to turn away those who want to deposit more with them either.

I will admit the forecasting must suck with too many larger accounts, but the profits are solid.

 

[Zoomer]

That $25,000 liability can drop at any time, but until then you can use it any way you please until it does. It is in effect an interest free loan, but you must repay that part of the principle the moment it is paid to a model.
Banks seem to do well enough out of holding our money for us until we actually spend it. I don't see them wanting to turn away those who want to deposit more with them either.

I will admit the forecasting must suck with too many larger accounts, but the profits are solid.

Depends - if they've declared it as profit and paid tax on it.

Banks don't just "hold onto our money", that's not how banks work. They invest, or lend, it out - they do not have it in a cash reserve.
The entire "bank run" principle when people withdraw their funds en masse is that banks do not have cash reserves to cover customers withdrawing all their funds, and so sudden bankruptcy can occur. It's rare, but not unheard of, these days:

https://en.wikipedia.org/wiki/Nationalisation_of_Northern_Rock#Run_on_the_bank

But the overall point being made is that people seem to think this limit is "arbitrary" and "against the members" for no reason. I'm putting forward that it has nothing to do with members, and isn't arbitrary either.

 

[HiGirlsRHot]

The financial term for this no interest loan is called float at it is common for many firms, and it's how insurance companies operate It is also one of the secrets to have Warren Buffet became so rich. Insurance companies collect premiums and then payout claims for everything from car wrecks, to cancer treatments, to life insurance, to hurricanes. It is real problem for things like Hurricane because the events are rare, some years 2 or 3 big storm other years 0 and the payouts are huge.

MFC operates like an auto insurance company, they collect tokens every day, the tokens are spent on models every day, and twice a month they settle up. You figure MFC has more than 1,000+ models on at time each models averages 400-450 tokens (camscore 1000) so they customers are buying and spending at 500,000/hour so even the biggest payout of 1.2 millions tokens in 2 1/2 hours of revenue. That's really nothing that in the grand scheme. The bigger issue is fraud.

TLR MFC could vastly increase token limits

 

[SMuser69]

Usually storage limits like this is to hedge risk from exploits. Let's say someone figures out a way to trick MFC's processor to generate free tokens. The storage limit was probably there to mitigate the damage a situation like that would create. The storage limit could had simply been a rule made by a previous processor then never needed to change. It could simply be their the processing code was originally coded 8bit so couldn't handle a number that large.

From my experience limits on camsite are 90% demands of the payment processor. The processors are why, blood, incest, scat are banned not because MFC has an opinion about it themselves.

MFC changed processors a few times in the last 4 years maybe it's just the new processor green lite a new storage limit.