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Example of Buyback Program at work

A step-by-step example of Buyback Program at work
Before we show Buyback Protection Program at work, there are some concepts we need to clarify first:
Buyback Valid Time: Time during which users may use Buy Back Program (provided Impossible Finance has triggered it).
Buyback Trigger Price: Buyback Protection Program will only be activated if the Token Market Price is at or below the Buyback Trigger Price.
Buyback Price: Price at which the users who opt for the program can sell back to the project.
Now that we understand what these concepts are, let's look at the table below, which refers to the Buyback Program of one of our recent IDOs: Aura Network.
Buyback Program Details for Aura Network IDO
So, for users to be able to take advantage of our Aura Network Buyback Program, 3 rules must be respected:
  • Market Price must be equal or below Buyback Trigger Price.
  • User must request the Buyback during Buyback Valid Time.
  • User must never have sold any Aura tokens.
If all 3 rules are respected, then the Buyback Program can be used by willing users, who can then sell their tokens at the price of US $0.045, minimizing their downside to a maximum of approximately 30%.
3 examples of this can be seen below:

Example 1

  1. 1.
    User buys 100 AURA tokens at the price of US$0.065
  2. 2.
    User never sells their tokens & the price of the AURA is US$0.039 (price fell 40% from IDO)
  3. 3.
    User is able to use Buyback Program, only losing 30% avoids losing an additional 10% because they are protected.

Example 2

  1. 1.
    User buys 100 AURA tokens at the price of US$0.065
  2. 2.
    User never sells their tokens & the lowest price of the AURA is US$0.050
  3. 3.
    User is not able to use Buyback Program because the Buyback Trigger Price is never reached

Example 3

  1. 1.
    User buys 100 AURA tokens at the price of US$0.065.
  2. 2.
    User sells 50 tokens at US$0.090 & but then price dips to US$0.030, triggering Buyback Trigger Price.
  3. 3.
    User is not able to use Buyback Program because he sold part of his tokens.