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MIRROR FLIP
The money-backed state of Enterprise Tokens issued under the ETO framework makes it possible to profit on an Enterprise Token even if it drops in price.
This is possible by buying Enterprise Tokens below the price floor (buyback value) and then claiming a buyback for a risk-free profit.
A mirror flip is created: the profits generated from buying an Enterprise Token below the buyback value mirror the effect of selling a token above the ETO price.
For example, buying a token for 10% below the price floor and then claiming a buyback generates profits, as does selling a token for 10% above ETO price.
Only ETO participants have the ability to claim a buyback; the value of this privilege is increased by the opportunity to mirror flip. Though, to ensure a wide number of ETO participants get to benefit from mirror flip opportunities, the number of exchange-bought tokens a participant can claim a buyback for is capped at 4 times his/her ETO purchase.
For example, if a person bought 5,000 tokens in the ETO, then this person can claim a buyback for up to 20,000 tokens bought on the NEPRI ETExchange. The opportunity to refund surplus tokens opens up only in the secondary buyback phase of each buyback round.
Last modified 8mo ago
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