Example of Buyback Program at work
A step-by-step example of Buyback Program at work
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A step-by-step example of Buyback Program at work
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Before we show Buyback Protection Program at work, there are some concepts we need to clarify first:
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.
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:
User buys 100 AURA tokens at the price of US$0.065
User never sells their tokens & the price of the AURA is US$0.039 (price fell 40% from IDO)
User is able to use Buyback Program, only losing 30% avoids losing an additional 10% because they are protected.
User buys 100 AURA tokens at the price of US$0.065
User never sells their tokens & the lowest price of the AURA is US$0.050
User is not able to use Buyback Program because the Buyback Trigger Price is never reached
User buys 100 AURA tokens at the price of US$0.065.
User sells 50 tokens at US$0.090 & but then price dips to US$0.030, triggering Buyback Trigger Price.
User is not able to use Buyback Program because he sold part of his tokens.