Calculation of Deposit Amount

To ensure all Middle-priority CT-tokens remain interchangeable—regardless of when users fund—every future cash flow (principal and interest) is discounted back to the stage closing date. Early contributors also earn an Early Adopter Bonus (see Early Adopter Bonus).

Core Concepts

• APR (Annual Percentage Rate): Simple annual interest rate used to calculate each interest payment (no compounding).

• APY (Annual Percentage Yield): Effective annual return including compounding; used here as the discount rate r.

• No Annuities: Loans follow either a bullet repayment (principal + interest at maturity) or interest-only schedules; annuity payments are not supported.

Deposit Formula for Middle-Priority CT-Tokens (Advanced Users)

where:

• N: Number of expected payments

  • N=1 for a discount loan (single bullet payment of principal);

  • N>1 when interest is paid periodically (monthly or quarterly).

• CF_k​: Cash flow at the kth payment

  • Bullet repayment (discount loan): CF_1= Principal;

  • Monthly interest only: CF_k = APR / 12 × Principal;

  • Quarterly interest only: CF_k = APR / 4 × Principal;

  • Note: The final payment returns the principal no matter the repayment schedule.

• r: Annual discount rate = APY

  • r = APY = APR for monthly and quarterly interest, which means the cashflows are discounted at the same rate as the APR of LP.

• t_k: Days from stage close to the kth payment date.

By discounting each cash flow to a common date, every CT-token of same priority and nominal in the pool represents the same economic value, preserving fungibility across multiple stages.