Yes, this needs to be explained.

One way would be to have contracts with suppliers with performance guarantees - A company like Flextronics might be able to offer that, but in USD obviously.

But right now we don't even know who's going to be assembling units.

Another possibility would be they're planning on running off a massive number of chips themselves and can mine the necessary BTC to do refunds.

Of course, to be fair: everyone who's pre-ordered from a competitor or invested in another IPO has an economic incentive to see these guys fail to raise funding, including me.  If they fail, it means a few PH of chips not out there mining, and it means a few more btc for everyone who's currently mining before difficulty reaches a singularity

I'm sorry, but here's common sense 101:
If pre-order sales are used to fund a project, there is exactly (the expenditures to date) *less* money available for refunds at each step of the way.  Full refunds are out of the question.

i'm glad to see you acknowledge this as it is absolutely true.

also, now that KNC has it's affiliate program running, anyone of you participating in that has an even greater allegiance with KNC and should be held accountable for it.

AGAIN

SHUT UP AND TAKE MY MONEY

Damn that's a good scam. I seriously need to start my own ASIC company lol.

Frankly worst case - if HashFast isn't able to deliver by years end, that would still be faster delivery than Avalon B3 units (3+ months late) and they didn't have a refund option up front.

Personally i like that there is a backstop to how long it will take.  I am sure that BFL customers would have loved to have this in place when they ordered.

I do actually see this raising the bar a little... though there are still some questions about the refund that haven't been answered:
Worst case would refunds be in USD or BTC?
What about international customers?

I think Metabank set a good example for pricing in dollars, but only accepting and refunding in BTC.
I would recommend the same.
Obviously the community would prefer BTC.  

Edit-
I now see that this has been answered in https://bt.irlbtc.com/view/270384.msg2903338#msg2903338
Refunds will be in BTC.
It is good to see this moving in a positive direction!

Crumbs -
I think I read originally when they first came on the scene that the company had received some amount of startup capital.  I don't know if it was stated or guessed at around $2M.
I would think that should be enough to cover the NRE for a 28nm especially if "partnered" with a team with the skill.
Why would they need our capital?  That is a tough one. 
I am trying to think of scenarios where miner purchases are just part of a larger sales strategy revolving around raw chips to big farms on one side, and small individual miners on the other.  Kind of like bitfury selling to 100TH and to metabank, and to the Tytus webstores.

Try harder... I don't think there is anyone (sound of mind that is) willing to fund such a business plan all by themselves. The risks are just too high.

this refund question is something i've been trying to get more info on myself as i am in the same boat you guys are much more than you think.  as in, i don't get paid unless this whole thing is successful and i have an order in place for BabyJets that i paid upfront for too.

btw, for those of you who keep insisting that i am just a shill, stop reading right here.  i'd much rather you just sit waffling out there in the wind having no real clue about what's going on with HashFast and to the asic marketplace in general, to your own detriment.  imo, you should be viewing me more as an important source of info or link to the company that can help you along in this process as i clearly post way more than the company reps have time for.  the smart guys are talking to me via pm's or emails trying to find out what's really going on while the other company shills that seem so eager to jump on board that new Reseller Program, show up here to criticize anyway they can.  and remember, i am not a company employee or representative.  i can say what i want when i want whether it is positive or negative about the company.  and i fully intend to do so.

having said all that, you need to realize a few things.  i too once viewed that 12/31 date as some sort of hard wall that if hit would result in an instant 100% request for refunds from all customers and bankruptcy for the company.  while an all out 100% refund request is possible, i don't think that will happen.  first, i think ppl are much more patient and forgiving about this process than you think.  there are alot of ppl who like HashFast and the ppl involved. i think they will give the company more time if need be to complete a workable solution, especially if they explain why. they realize that this is the tech industry and it's possible to have delays.  second, you may not realize it, but there is no shortage of VC capital poking around trying to buy equity positions in many of these companies. there are plenty of sources of money to tap into in case of a funding problem.  third, i don't think it is even going to be an issue.  ppl are buying via email now and most of the stuck orders in the system have been salvaged.  

there is going to be a machine and Simon still thinks it will be delivered on schedule.