FAQs

How is the Mint Fee calculated?

Mint Fee: Fees are based on the minted BITU token value and paid by the collateral asset. Fee amount reflects the current collateral market price.

Mint Fee Calculation:

\text{Mint Fee} = \frac{\text{Minted BITU value} \times \text{Mint fee rate}}{\text{Asset Price}}

Mint Fee Rate: 0.15%.

How does the Collateral Ratio work in the mint process?

Collateral Ratio: The collateral ratio of the position after this operation

The received $BITU amount is calculated by the following:

\text{Received } \$BITU \text{ amount} = \frac{(① + ② - \text{Mint Fee}) \times \text{Asset Price}}{③} - ④

①：collateral BTC amount
②：BTC deposit amount
③：collateral ratio
④：$BITU Minted amount

For example,

\begin{align*} \text{Received } \$BITU \text{ amount} &= \left( 0.01 + 0.00999 - 0.000075 \right) \times \frac{66249}{180\%} - 330.99 \\ &= 404.49 \end{align*}

The discrepancy in the data is due to rounding.

What will happen when the asset price rises?

The collateral ratio will change with the real-time price of the collateral asset, allowing users to benefit from price increases. In such cases, users can choose to mint more BITU at the initial collateral ratio or use the minted BITU to redeem the original amount of collateral assets.

Below is an example where users can redeem all of their collateral assets after a rise in price of BTC: