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Financing

When your offer matches, the discount you accept becomes the cost for financing.

How Financing Works

At Mint Time

When your offer matches:

Spread = Reference Price × Discount × Financing Years × Quantity
You Receive = Reference Price × (1 - Discount × Financing Years) × Quantity
  • Spread is held in a financing account (not immediately earned)
  • You receive the remainder as payment

Example:

Item Value
Quantity 1,000 tokens
Reference Price $100
Clearing Discount 5%
Financing Period 36 months
You Receive $85,000
Spread Held $15,000

Over the Financing Period

Spread accrues linearly over your financing period:

  • 12 months: Faster accrual
  • 36 months: Slower accrual

Regular accrual transfers a portion from financing to fees.

On Early Burns

If tokens burn before financing fully accrues:

  • Unaccrued spread is refunded to you
  • Accrued spread is not refunded
  • Refund is proportional to burn quantity

Accrual Example

Time Days Accrued Remaining
Start 0 $0 $5,000
3 months 90 $1,233 $3,767
6 months 180 $2,466 $2,534
12 months 365 $5,000 $0

Refund on Early Burn

Scenario: 6 months into a 12-month period, 20% of tokens burn.

Item Value
Total financing $5,000
Accrued (6 months) $2,500
Remaining $2,500
Burn quantity 20%
Refund $500 (20% of $2,500)

After this burn:

  • Supply remaining: 800 tokens
  • Remaining financing: $2,000

Refund vs Forfeit

Unearned financing is handled differently depending on how the obligation ends:

Event Unearned Financing
Burn (investor exits) Refunded to you
Buy-Back (you exit) Forfeited to platform fees

Why the Difference?

  • Burns: You didn't initiate the exit, so you get the unearned financing back
  • Buy-Backs: You chose to exit early, so the unearned financing is forfeited as an early termination cost

Tracking Your Financing

Each fill tracks:

Field Description
Total Financing Spread collected at mint
Consumed Amount accrued to fees
Refunded Amount returned on early burns
Forfeited Amount lost on buy-backs
End Date When financing period ends

Remaining = Total - Consumed - Refunded - Forfeited

Next Steps