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Supplier Guide

This guide is for energy producers and wholesalers who want to monetize inventory on the Energy Substantiation platform.

What Are You Selling?

You're selling a volume of commodity in a true sale. When your offer is matched with mint orders, the system generates a volumetric energy receipt documenting the commodity ownership and bailment.

Under the bailment:

  • The custodian is the bailor. It holds the receipt for the benefit of tokenholders and can require delivery of the commodity.
  • You are the bailee. You retain physical possession of the commodity at an approved location, but must safeguard it, keep it free of liens and competing claims, and deliver or repurchase it when required.

Here's how it works:

  • You have eligible commodity inventory, such as stored oil or gas, pipeline inventory, or tank bottoms
  • You create an offer to sell a volume of that commodity
  • When your offer is matched with mint orders, the system generates volumetric energy receipts and sends them to an independent custodian
  • The physical commodity remains with you under bailment and is subject to regular verification and audit
  • You get cash upfront; investors get tokens backed by your receipt

When you buy back, you retire the receipt and its associated obligation.

Why Supply to Energy Substantiation?

Benefit Description
Monetize inventory Convert physical holdings to cash
Known cost of capital The discount you accept is your cost
Flexible terms Choose 12-, 24-, or 36-month durations
Preserve unrelated arrangements Existing arrangements may remain in place only if they do not encumber the commodity covered by a receipt

Commodity covered by a receipt must be owned free and clear when offered and remain free of liens, pledges, and competing claims throughout the bailment.

Supplier Workflow

Onboarding → Create Offers → Auction Matches → Settlement
  1. Onboarding - Complete paperwork with Mobius, pass custodian audit
  2. Create offers - Specify quantity, discount, and duration
  3. Auction matches - Your offer is matched with investor mint orders
  4. Settlement - Receive payment

Topics

Topic Description
Onboarding Getting started as a supplier
Offer Orders How to create and price offers
The Auction How matching and allocation work
Settlement Offer and receipt settlement
Spread How spread revenue accrues
Buy-Backs Retiring obligations early

Key Concepts

Reserve Balance

Your reserve balance tracks outstanding receipt obligations. The units vary depending on the commodity type. See the token documentation for details on the units for each commodity.

  • Negative = You have outstanding obligations (normal after offering)
  • Zero = No obligations
  • As receipts are redeemed, your reserve balance moves toward zero

Capacity

You have a maximum token limit assigned during onboarding:

Available Capacity = Max Token Limit - |Reserve Balance|

Each location has its own capacity, and receipts are automatically split across locations.

New offers are limited to your available capacity.

Spread

The discount you accept becomes the spread held against your offer. Your sale of the commodity volume is a true sale documented by a receipt; the spread accrues to platform fees over the duration of the obligation.

  • Held in a separate account initially
  • Accrues to platform fees over the duration using the OID method
  • Applicable unaccrued spread is refunded if tokens are redeemed early
  • Forfeited if you buy back your receipts early

Next Steps