Offer Orders¶

Offer orders are how you offer energy for sale on the Energy Substantiation platform. When an offer is matched with mint orders, the system generates the associated volumetric energy receipts.

What is an Offer Order?¶

When you create an offer order, you're offering to sell energy at your specified terms. If the offer is matched with mint orders at the daily auction, the system generates receipts for the sale and you receive payment.

Order Fields¶

Discount Methods¶

You can specify your discount in two ways:

Percent¶

A percentage off the reference price.

• Range: Greater than 0% up to 50%
• Example: 5% on $100 reference = $95 effective price

Use percent when you want a consistent percentage regardless of price movements.

Differential¶

A fixed dollar amount below the reference price.

• Value: Must be negative (e.g., -$5)
• Example: -$5 on $100 reference = $95 effective price
• Conversion: The system converts to percent: $5 ÷ $100 = 5%

Use differential when you want a fixed dollar spread.

Percent vs Differential¶

Key difference: Percent stays constant as a percentage; differential stays constant as dollars but varies as a percentage.

Duration¶

The duration determines how much spread is deducted from your payment.

Important: Your discount is multiplied by the number of years. This significantly affects what you receive.

The Calculation¶

Here's how to calculate what you receive:

Step 1: Gross Value    = Reference Price × Quantity
Step 2: Spread         = Gross Value × Discount × Years
Step 3: You Receive    = Gross Value - Spread

Example: Same Discount, Different Duration¶

Setup: $100 reference price, 1,000 tokens, 5% discount

12-month duration:

36-month duration:

The 3-year offer pays $10,000 less upfront because the spread is 3× larger.

Choosing Your Duration¶

• 12 months: Lower spread deducted, more cash upfront
• 24 months: Intermediate spread and obligation term
• 36 months: Higher spread deducted, less cash upfront

Choose based on your cost of capital needs and how long you're willing to hold the obligation.

Examples¶

Example 1: Differential Discount¶

You offer 500 tokens at -$4 differential with 12-month duration.

First, convert differential to percent:

Discount = $4 ÷ $80 = 5%

Then calculate:

Example 2: Higher Discount, Longer Duration¶

You offer 2,000 tokens at 8% discount with 36-month duration.

That's a 24% total spread ($36,000 ÷ $150,000) because 8% × 3 years = 24%.

Quantity Options¶

By Tokens¶

Specify an exact number of tokens to offer:

Offer 1,000 tokens

By USD¶

Specify a dollar amount (converted at reference price):

Offer $100,000 worth

At $80 reference: $100,000 ÷ $80 = 1,250 tokens

Open Quantity¶

Offer all your available capacity:

Offer all available capacity

Entering 0 for quantity and amount indicates an open quantity order.

Time in Force¶

Day Orders¶

• Active for the next auction only
• Expire if not matched
• Use for specific timing or market conditions

GTC (Good Till Canceled)¶

• Remain active until matched or canceled
• Participate in every auction
• Use for ongoing supply

Order Lifecycle¶

Create Order → Auction Validates → Matches Mint Orders → System Generates Receipts → Custodian
                    ↓                 ↓
              (if invalid)      (if not matched)
                 Killed            Expired/Remains Active

Tips¶

• Understand the math - A 5% discount for 3 years means 15% total spread, not 5%
• Start conservative - Begin with lower quantities until you understand the market
• Consider duration carefully - 36 months means 3× the spread of 12 months
• Monitor clearing discounts - Review auction results to calibrate your offers
• Use Day orders for testing - Limit exposure while learning

Next Steps¶

• The Auction - How offers are matched with mint orders
• Settlement - What happens when offers match with mint orders
• Spread - How spread accrues over time