Futures Deposit & Claim Mechanics

Deposits:

When a user deposits BNB into the Futures contract, 90% of the BNB is used to immediately buy Elephant Token from the market. These tokens are then sent to the Elephant Treasury. The remaining 10% of BNB is sent to the BNB Reserve. The BNB Reserve will be used exclusively to pay out Elephant Money Futures Yield.

The growth of the Elephant Treasury is designed to outpace the liabilities of the Futures contract therefore achieving long term sustainability.

Any fresh deposits made will be added to the users Total Value Locked. If the user has accrued rewards and makes a fresh deposit, rewards will also be added to the Total Value Locked. Deposit/Compounding Example: Total Value = 10,000 USD Available Rewards = 250 USD The user deposits 200 USD worth of BNB. New Total Value = 10,450 (10,000 current TVL) + 200(deposit) +250(rewards)

The user will now earn up to 0.5% per day on 10,450 USD

Claims: When a user claims their accumulated rewards, the BNB Reserve will be used to fund this if the claim amount is less than 1% of the BNB reserve value at the time of claiming.

If the claim amount is greater than 1% of the BNB Reserve value, the Elephant Treasury will sell Elephant Tokens to pay the claim*.

When the user claims accumulated rewards, those rewards are deducted from the users personal TVL. Claim Example: Total Value = 10,000 USD Available Rewards = 250 USD

User claims 250 USD worth of BNB. New Total Value Locked = 9,750 USD (10,000 current TVL) - 250 (rewards).

The user will now earn 0.5% per day on 9,750 USD. There are no taxes or fees of any kind.

*The Elephant Treasury will sell 10% more than is required to pay the claim. The 10% surplus is used to Top off the BNB Reserve. Example: User claims 20,000 USD. If this is more than 1% of the BNB Reserve value, the Elephant Treasury will sell 22,000 USD worth of Elephant for BNB (10% more than is required to pay the claim). The user will receive 20,000 USD worth of BNB and the remaining 2,000 USD worth of BNB will be sent to top up the BNB Reserve.