Revenue model | [subject to change]

Risk Parity Protocol | The Lite Paper V1.0

The economics of the $FORM token have been formulated to reward the long-term interests of key stakeholders and demotivate short-term speculative behaviors in the ecosystem. Initially, all revenues will be generated from the fees collected when index tokens are minted and withdrawn:

Revenue Source

Service Fee

Minting

0.5% of value staked

Withdrawing

0.75% of value unstaked

Profit Sharing

5% of total profit

Fees charged in native assets will be swapped into $FORM and will either be distributed to $FORM holders on a pro rata basis or burned according to the following plan:

  • $FORM holders will receive 50% of the fee collected by the protocol

  • The operational treasury will also receive 50% for the core development team on a pari passu basis until the total USD value of the operational treasury reaches a daily maximum of $1M.

  • Once the weekly maximum has been reached, any further fees will be burned as a deflationary measure (only fees allocated to operational treasury are burned, fees continue to be paid to $FORM holders). This and other parameters could be subject to change as the result of a governance vote, beginning 12 months after IDO.

$FORM will be tradeable on DEXes as well as CEXes. Initial public offerings will likely be initiated through IDOs (Initial DEX Offerings) in Q2 2021.