To understand the process of collateralization, read the following rules.
- Asset is any digital asset that could represent specified bounty stakes of a particular project which are listed on Tokpie exchange and available for trading
- Base price is an Asset price set by Tokpie and used in calculations of collaterals.
- Bounty campaign is a marketing program aiming to promote a specified project where hunters can earn a project’s tokens.
- Bounty stakes are the points which are used as the means of evaluation of bounty hunter’s performance during a project’s bounty campaign. Every bounty stake represents the right to receive a project’s tokens in the future when stakes-to-token conversion rates are being defined.
- Bounty Stakes Trading 2.0 is an alternative way to deposit and trade bounty stakes on Tokpie exchange.
- Collateral is the specified amount of TKP tokens pledged as security for obligation settlement. If a hunter fails to settle his obligation then he loses the corresponding collateral.
- Collateralization is the process of depositing bounty stakes on a user account balance and locking the corresponding amount of TKP tokens as collateral.
- Collateralize is an action leading to the depositing of particular bounty stakes on a user account balance after locking the corresponding amount of TKP tokens as collateral.
- Depositing is a process resulting in appearing bounty stakes on a user account balance.
- Hunter is a bounty hunter or bounty participant who is engaged in a Project’s bounty.
- Obligation Settlement is the process of unlocking TKP collateral that was initially used for the asset (bounty stakes) depositing.
- Project is a cryptocurrency startup, ICO, STO or a company that runs its bounty campaign and whose bounty stakes are listed on Tokpie.
- Project’s tokens are any altcoins (tokens or coins) issued by a Project and used to reward bounty hunters who participate in Project’s bounty campaign.
- Settle is an action leading to the withdrawing of particular bounty stakes from a user account balance and unlocking the corresponding amount of TKP tokens initially pledged as collateral.
- Stakes-to-token conversion rate is a rate that defines how many tokens are to be distributed to a bounty hunter for the number of stakes earned in a specified bounty campaign.
- TKP is an ERC-20 token issued by Tokpie exchange that provides its holders with the following benefits.
- Tokpie is a cryptocurrency exchange that provides its users with the unique bounty stakes trading service.
- User A person who has registered Tokpie exchange.
- Ban of a user can happen if a user(s) make wash trading.
1. Collateralization and Depositing
- A user has an option to deposit bounty stakes, which are listed on Tokpie exchange under Bounty Stakes Trading 2.0 solution. To make such depositing a user shall provide collateral in TKP tokens. The size of the TKP collateral is calculated due to the formula:
Base price x Quantity x Collateral rate
Base price is the price of a stake set by Tokpie,
Quantity is how many stakes you want to collateralize and deposit,
Collateral rate is a number from 1.4 to 3.0 that depends on your price plan.
The following collateral rates are applied:
Trial plan: 3,
Light plan: 2.5,
Standard plan: 2,
Premium plan: 1.8,
Enterprise plan: 1.4.
It means that a user having Enterprise status gets the lowest 71.4% LTV (Loan-to-Value Ratio).
- Tokpie freezes TKP tokens pledged as collateral on a user account balance automatically when a user clicks on [Collaterilize & Deposit ] button here. At the same time, Tokpie depositing the corresponding amount of bounty stakes on a user account balance.
- To get back TKP tokens pledged as collateral, a user shall settle his obligation as described below.
2. Obligation Settlement
- Settlement before a project’s token distribution. A user has an option to return bounty stakes, which he had initially collateralized and deposited at any time before the token distribution event. If a user had already sold these bounty stakes, then he can buy the required amount in the related market here before the project’s token distribution to the bounty hunters.
- Settlement after a project’s token distribution. Alternatively, a user has an option to settle his obligation regarding the initially collateralized & deposited bounty stakes by providing Tokpie with the related project’s tokens. The number of a project’s tokens to be provided is defined in accordance with the formula (unless otherwise stipulated by the rules):
stakes-to-token conversion rate x the number of unsettled bounty stakes
After a project’s token distribution event, Tokpie sends an email message to all users who still have unsettled obligations. After receiving such email, a user shall send a project’s tokens to Tokpie withing 48 hours.
- After a user performs any of the above options to settle his obligation, Tokpie returns the corresponding TKP collateral to a user.
3. Risks of default
There are two risks associated with bounty stakes selling: a user default and a bounty fail.
If the value of unsettled bounty stakes, which were already sold, exceeds 100000 TKP, Tokpie has the power to unilaterally settle user’s obligations.
If a user had collateralized and deposited bounty stakes of a project that is not going to distribute its tokens to all bounty hunters for any reasons (a failed project) then Tokpie returns TKP collateral to a user due to the formula:
TKP pledged as collateral - TKP tokens already obtained by a user from selling the related bounty stakes
For any questions, you can contact us at https://t.me/tokpie