FAQ's

WHAT IS CRYPTOCURRENCY MINING?

The main risks associated with cryptocurrency mining are – Financial, Regulatory, Energy, and Cyber Security:
- Financial Risk – this form of risk relates to the market fluctuations in coin values. In their current state, cryptocurrencies are considered highly volatile – however, as the acceptance and adoption of cryptocurrency grows, it is expected that they will become more and more stable.
- Regulatory – With cryptocurrency being such a new concept – federal government and IRS regulations are still being developed. We are continuously monitoring for regulatory updates to ensure that we are keeping all partners up to date.
- A spike in energy costs would impact our profitability on the mining rigs. However, this is unlikely due to the generally low cost of energy in the state of Texas. We are also working closely with energy brokers to keep our costs as minimal as possible. To further mitigate this risk, we are also planning for the use of renewable energy source – primarily Solar Power.
- Cyber security is a modern risk that affects nearly every industry. We are doing our part to diminish this risk by minimizing exposure. This is done through weekly payouts to make sure we are not holding too much crypto in one wallet at a time and by never accessing wallets directly from the mining rigs so that they can never be hacked from those machines.

What are the monthly expenses?

There are three recurring monthly expenses that are incurred on every GPU. All expenses will be reported and withdrawn each month with supporting documents being sent out to each client. These expenses are: Electricity, Rent, and Management FeeElectricity – this is charged monthly as per the bill that is received. This amount will be split equally among the mining GPUs and a copy of the bill will be sent to each client on a monthly basis. The current estimate on electricity cost is: $16.25 per GPU per month.
- Rent – this is a fixed expense that is equal for all GPUs and is based on the current specialized facility that houses the cryptocurrency mining rigs. The current monthly rent cost is: $12.50 per GPU per month.
- Management Fee – the management fee is charged each month based on the mined cryptocurrency that your GPU produces. For clients with 1-7 GPUs, the management fee is 15% of mined production and for clients with 8 or more GPUs, the management fee is reduced to 10% of mined production.

Clients are given the opportunity to purchase GPUs for mining [the cost per GPU will vary based on the number purchased]. With each GPU or set of GPUs that is purchased, we create a legally structured Management Agreement that gives Amana Crypto the right to house, operate, and manage your GPUs at our specialized location and within our mining pool. Once recurring monthly expenses [rent, electricity, management fee] are deducted, the balance is entirely transferred to you.

Disclosure

Cryptocurrency Risk: Cryptocurrency (notably, bitcoin), often referred to as ‘‘virtual currency’’ or ‘‘digital currency,’’ operates as a decentralized, peer-to-peer financial exchange and value storage that is used like money. Cryptocurrency operates without central authority or banks and is not backed by any government. Even indirectly, cryptocurrencies may experience very high volatility. Cryptocurrency is also not legal tender. Federal, state, or foreign governments may restrict the use and exchange of cryptocurrency, and regulation in the U.S. is still developing. Cryptocurrency exchanges may stop operating or permanently shut down due to fraud, technical glitches, hackers, or malware.

According to market data, GPUs used for mining have an average useful lifespan of about 5 years. They generally start to diminish in performance after 3 years but will continue to mine throughout the 5 year lifespan.

This is decision that can be made by consensus of the partners. This being a partnership requires that we distribute all revenue less expenses.

The GPUs are being run on a web-based mining software. There is no significant data of any sort that is being stored that needs restoring. GPUs can be interchanged and added to new motherboards if need be. For security reasons, no crypto exchanges or wallets will be opened on the mining rigs- by doing this we ensure that there is no key-stroke trace of the crypto wallet on the mining rigs. We strongly recommend that Partners purchase a Hardware Wallet [eg. Trezor or Ledger], and backup all cryptocurrency earnings on the hardware wallet.

Is there a warranty on the GPUs?

Every GPU purchased comes with a manufacturer backed 3 year warranty that we will register and utilize if necessary

If you are interested in learning more about the crypto-mining membership opportunities that we have to offer, please connect with us