Frequently Asked Questions

What is Ancapistan?

Ancapistan is not a country in the real world. Ancapistan is a nation of ideas, ideas about individual liberty, self responsibility, and non-aggression against others. The name means for "Land of the Free Marketers", where 'an-cap' is short for "anarcho-capitalism" aka laissez-faire capitalism.

Thus, Ancapistan is where people looking to engage in trade and commerce can do so freely, unfettered by regulation, law, oppression, taxation, or other interference in the individuals right to live and work freely, to contract without limitation, and to enjoy their property and fruits of their labor without threat of fraud or confiscation.

Ancapistan is an undiscovered country to many in this world. It is not to those of us who live and work there every day. We invite you to come join us, discover Ancapistan, and learn to trade freely.

Trade Free or Die....

What is the difference between interest and dividends?

Interest is a fixed return on a consistent schedule. Dividends can vary based upon the profitability of the enterprise, from none up to 100% of the profits. For this reason, dividends are a sustainable form of return on investment.

Furthermore, since ACE BnT pays the dividends out, not the company CEOs (CEO's pay the amount to ACE) this is also not a direct return on investment.

The radical growth in SL makes high rates of return possible. SL exhibits economic growth of 1000% annually. 0.05% daily returns is approximately 22% annually, which is a very small percent of economic growth. In RL, bank interest is usually 1/4 to 3/4 of economic growth rate on demand deposits, where the best economic growth is typically 3-5% annually. For us to be comparable to RL financial institutions in comparison to economic growth, we should actually offer returns in excess of 0.5% per day or more.



For a long time SL has shown few signs of slowing down until recently. The summer recession was a repeat of previous recessions, and the wagering ban put a bit of a crimp in the economy, but really, the primary economic areas are land, and consumer shopping. Supply Linden activity in September was quadruple the level of August, so the summer recession is over and we expect a new boom cycle to be starting up like it did last fall of 2006.

People are buying SL property and products at a fantastic rate, and the growth is simply amazing. This growth is what makes our high rates of return possible. We recognize that radical growth can't last forever, but we are doing the prudent thing: facilitating and riding that growth while monitoring our business carefully.

Aren't Stock Options Risky?

Yes they are. This is why only traders who can demonstrate that they hold shares in that security will be allowed to write options on those shares. This is called a "covered option".

In RL, traders are allowed to write options without actually owning the share, or by owning 1 share of that stock, and enough shares of another company to cover the asset value. These are called naked or phantom options and phantom shares, and many consider these sort of instruments to be costing the US economy as much as $1 Trillion per year as hedge funds destroy productive businesses. We will not allow uncovered options like these, all options must be covered by shares in the stocks being optioned, with no exceptions.

When an option is written by a trader, the shares covering that option will be escrowed and prevented from being traded away, while still being counted as an asset in the traders portfolio until the option is called.

If Stock Options are Risky, Why Do You Allow Them?

One reason is because stock options provide a sense of where the market is headed on a stock, and thus provides a significant degree of natural price regulation, provided uncovered options are not allowed. This is also why we are doing currency and land futures in future upgrades to our features.

Transaction Fees

Currently ACE charges a 3% commissions on the sale of stock in a live traded company and escrow 5-30% of IPO Funds for 2-6 months depending on estimates of the risks involved with the listed company and its CEO (this is an SLEC standard).

The following is a breakdown of where these fees go.

Standard 3% Trade Commission

2.5% - ACE Commission

.25% - Listed Company Activity Commissions - Success of ACE depends on the promotion of it by all those involved in it. Companies that list on ACE and promote the ACE to their estates, customers, and to the wider world and RL should directly benefit from that promotion by earning a share in commissions earned on trades in shares of their company.

.25% - ACE Insurance Fund - While ACE will strive to ensure its CEOs are legitimate, and their companies are as well managed as possible, there remains the risk that companies can fail in their business plans even without any intent to defraud, and despite the best good faith efforts of management to achieve their goals. This is the nature of business and investment: there is risk in life. To compensate victims of fraud only, where CEOs liquidate assets and leave Second Life via laundering or other means, the ACE Insurance Fund collects a portion of commissions to be paid out in the event that such fraud occurs.

Additional 1% Bankruptcy Insurance (Upcoming Feature)

In addition to the 3% commission, investors may also purchase insurance against company bankruptcy each time they purchase shares by paying a 1% additional fee. These fees will be escrowed specifically for this purpose, and will company CEOs and other officers will not be eligible for funds from this escrow fund, however they must file bankruptcy with ACE in order for the shareholders who purchased this insurance to collect on it, and all company assets must be turned over to ACE for liquidation and dispersal to the shareholders.


5-30% IPO Fees Breakdown

Under SLEC standards, it is recommended that Exchanges hold 5-30% of IPO funds in escrow, to be paid out monthly over 3-6 months following the IPO, both to ensure the capitalized company retains sufficient cash flow to keep operating until they can be confident of reaching profitability, but also to ensure that those CEOs intent on ill will will look elsewhere for their lucre.

The degree of funds withheld will be a function of the age of both the avatar and the business itself, whether business facilities are in BNT estates or another estate (not owned by the CEO or his alts) that has agreed in contract to enforce the contracts of the exchange, as well as the degree of disclosure the CEO has made as to their real life identity and location. In addition to these factors will also be included an evaluation of the risks associated with the business plan presented in and of itself.

Transaction fee break feature for large volume traders

This feature is beta and subject to change. Business decisions should be based on the 3% fee instead of your potential break. Transactions with a lower than a default transaction fee as is true with any transactions at ACE are final regardless of future changes to the formula.

Your 30 day rolling volume is recalculated at the close of the trading day as well as your potential break on the transaction fee.

Here's the current formula
When Volume L$ is
less than 100000 = default fee (3%)
greater than or equal to 100000 but less than 200000 = default fee - 0.2 (2.8%)
greater than or equal to 200000 but less than 300000 = default fee - 0.4 (2.6%)
greater than or equal to 300000 but less than 400000 = default fee - 0.6 (2.4%)
greater than or equal to 400000 but less than 500000 = default fee - 0.8 (2.2%)
greater than 500000 = default fee - 1.0 (2.0%)

What is the SLEC?

The Second Life Exchange Commission is a volunteer organization founded in February of 2007 by ACE Chairman IntLibber Brautigan. At the time, he was a director on the board of another exchange, which had just closed due to trading irregularities and coding errors in its software.

The SLEC is intended to operate as a public service organization, promulgating voluntary standards for stock exchanges, listed companies, and traders to operate by. Like Underwriters Laborators (UL), and Consumers Reports, in real life, the SLEC holds no enforcement capability of its own granted by any government. Its only mechanism of enforcement is via publicity. By certifying, and publicly decertifying exchanges and listed companies, the SLEC seeks to encourage investors to 'vote with their money' by divesting from companies and exchanges which refuse to operate in compliance with its standards.

If you feel that ACE is not doing its best to comply with SLEC standards, then you should firstly get involved in our community governance processes to seek that it does so, and if you are unable to get satisfaction that it is doing its best and that you are able to be part of the solution to that lack, to take your money and go elsewhere.