Zero Balance Systems
In most LETS, currency or credit is created when members transact with each other. Those are zero balance systems, meaning that some members have positive balances, some have negative balances, and if you add all the balances together you get zero. Example: Mary sold four apples to John for one credit each. John now has -4 credits and Mary has +4. Between the two, they have zero.

The Pad Standard
Cloth Bank is also a zero balance system, but it's different in that shares are created only when members deposit pads into the bank. As long as the bank has inventory, it will always have a negative balance and members will always be positive. For every share that members hold, there is pad in the bank, similar to the way there used to be gold in the treasury for every dollar that people held.If the bank vaults were empty, everybody's balance would be zero.

The bank is 100% member owned. If the total value of the bank's inventory is 300 shares and you are holding 15 shares, you own 5% of the bank.

Values and Exchanges
Members may exchange shares for goods with other members, and shares can always be used to withdraw pads from the bank. For a common reference, a share is about equal to a US dollar.

When a pad is originally deposited, the value must be agreed upon by the depositor and at least three other members. If anyone disagrees on the value of a deposit it will go to a community vote.

Unlike other currencies, shares will not increase in value over time, so there will be no "buying low and selling high." If anything, shares will decrease over time if they are tied to unloved (illiquid) pads that sit in the bank.

Maintaining Liquidity
A difference between the gold standard and the pad standard is that the pads are meant to be liquid. We don't want them languishing in vaults for long periods of time instead of being used. This is why deposits are "taxed" at 10% while withdrawals are not.

In order to keep pads liquid, the bank's inventory will be revalued periodically and members' shares will be adjusted. For example, if there are five pads in the bank valued at five shares each and they have been sitting in the bank for over six months, they could be revalued to three shares each, which would reduce the value of the total inventory by ten shares. The total value of the bank would go from 300 to 290, and the 5% owner mentioned above would now hold 14.5 shares instead of 15. Every time these adjustments are to be made, they will be voted on by the community.

There are four ways to unload your wares at Clothbank. You can:

• deposit them in the bank
• add them to the catalog and sell them directly to other bank members
• make a donation
• or create offered or wanted listings.

• Depositing a pad into the bank is the best option if you need the shares immediately or if you don't want to have to wait for a buyer before sending the pads out of your home. You only have to wait until the pad and the price you've set is approved by three members (with no one voting against the deposit) and then you can send it to an admin and go on your merry way. You may also choose to hold into the pad until a buyer comes along if you'd like.

  Deposits are good for the bank because the more inventory the bank has, the more shares there are in circulation.

• Advantages of selling directly to another member include having greater control over the price and other terms, and not having to go through the voting process in order to have your item listed in the catalog. Selling directly is best for low price items, second-quality items, and items that are not pads or wet bags.
• When you donate pads to the bank, shares are generated and put into funds for people who need help starting a stash, people who need pads in an emergency, charities, or to pay the people who work at the bank.
• Offered and wanted listings are great if you want to be flexible on prices and quantities. An example would be if you have a box of fabric to get rid of and you'd like someone to make an offer for it.

You don't need to deposit your pad into the bank in order to make it available to other members, but advantages are:

• Instant payment - you don't have to wait for someone to purchase the pad before you receive your shares.
• When you deposit a pad for at least 5 shares, you automatically make a contribution to the community by paying a small tax.

To make a deposit, please fill out this form. Pads can be used, but they need to be stain-free and in ready-to-wear condition.

• The order confirmation page will give you an order number. You can also find your order number under the 'Orders' tab on your profile page.
• After checking out, go to Start a Transaction (Member Functions menu).
• Change transaction type to 'purchase item/donate shares'.
• Answer 'What is being paid for' with your order number.
• With Whom did you transact? Select Cloth Bank
• Enter your order total in the 'quantity' field and click submit.

Members can transfer shares to each other for any reason at any time, and there are no restrictions on what members can buy and sell in exchange for their shares. Members can also donate shares to each other.

If you would like to acquire some shares but don't have any pads to deposit into the bank, you can browse items wanted by other members or offer things for sale. If you can provide something that another member wants, you can start a transaction directly with the member. If this is the first time you're contacting the buyer, the transaction type should be 'offer an item'. It is up to the other party to agree to and complete the transaction.

If you have shares burning a hole in your pocket but don't need any pads, you can create listings for things that you do want or browse what other members have to offer. If you see something you like, you can start a transaction with the member who is offering it. If this is the first time you're contacting the seller, the transaction type should be 'request an item'. It is up to the other party to agree to and complete the transaction.

To give shares to the emergency fund or to another member, start a new transaction, select transaction type 'payment' and enter 'donation' to answer the question "What is being paid for."

If you know of someone who is not a member and needs some pads or if you'd like to raise donations for a charity such as Goods 4 Girls you can create an account for your cause and use the forums to ask members to donate shares.

There are two services we depend on that can only be paid for in national currency. Please go here if you would like to help out with postage and web hosting costs.

• The best way to help the bank is to feed it. Donate or deposit some pads and wet bags.
• List other items that you'd like to find new homes for in the catalog and the offered listings.
• Please don't be shy - vote on any ballots you see on the front page.
• We are always looking for ways to make the site more user-friendly and appealing, so share any ideas if you have them.
• The color wheel is here for anyone to use, and no one has any way of knowing who was the last to play with it.

We're so glad you've decided to give cloth pads a try, and we think you will be, too!

Here are some informative links to get you started

• The Cloth Pads Livejournal Community: An excellent resource for asking questions
• Obsidian's Reusable Menstrual Products Site: A comprehensive overview of alternative menstrual products
• Cloth Pad Reviews: A forum of reviews of different brands of cloth pads
• The Cloth Pads Wiki: An editable wiki with information on all cloth pad sellers and a search-able tag list
• Squidoo Lense: Cloth Menstrual Pads on a Budget

If you're going to start making your own pads. . .
The Do-It-Yourself Pads Livejournal Community is a great place to ask any questions you may have.
There's a lot of general advice to think about before you start at Obsidian's DIY Pad Site, including a guide to materials.
You can get lots of free sewing patterns (and pictorial guides) at The Cloth Pads Wiki's Pattern Hub.

We also have a starter shares fund for new members who have no other way to start their stash. Funds are limited and there may be a wait list at times.