FiX Digital Asset — OptionSwap
An explanation of the OptionSwap mechanism that gives qualified loyalists the choice to swap their FiX for stock options.
What is OptionSwap?
OptionSwap is a solution that motivates FIX trading to boost liquidity for FIX on Waves.Exchange as Finamatrix prepares for an IPO on a selected stock exchange.
OptionSwap gives the FIX trader the right but not obligation to swap FIX for Stock Options which provide Expected Allocated Stock Value or EASV in US dollars or equivalent.
How does OptionSwap work?
- A FIX trader will attempt to maximize the value of FIX with the growth of Finamatrix.
- If FIX value < EASV, the trader will buy FIX, driving prices up.
- If FIX value > EASV, the trader will sell FIX, driving prices down.
- FIX value can be observed in Waves.Exchange, for example, FIX/Waves.
- The EASV will be provided on a regular basis subject to updates as more assets are injected into our Special Purpose Company or SPC for IPO.
- The Stock Option provided is a Call Option that allows the holder the right but not obligation to buy Finamatrix stock at a certain price with the expectation of an increasing stock price.
- FIX traders can choose to send their FIX to our corporate Waves address in exchange for a pre-determined number of stocks.
- As an illustration, FIX price is trading at US$10 in Waves.Exchange and the FIX trader owns 10,000 FIX with a total FIX value of US$100,000.
- Only FIX traders, excluding the founding team, who have prior KYC registration records will qualify to receive stock options.
- Based on http://dev.pywaves.org/assets/fix and KYC registration records, for example, 200 Waves addresses with a total of say 10,000,000 FIX qualify to receive stock options.
- The same FIX trader who owns 10,000 FIX can now choose to receive 10,000 FIX / 10,000,000 FIX = 0.1% of the allocated stock value.
- If the EASV is US$110,000,000, the FIX trader’s total stock value is 0.1%*US$110,000,000=US$110,000. This value is greater than the value of his FIX of US$100,000, in this case, he can choose to send his FIX back to Finamatrix and exercise his option to receive the stocks.
- If the FIX trader’s total stock value is US$90,000, this value is lower than the value of his FIX of US$100,000, and in this case, he can choose to wait for his total stock value to become greater since Finamatrix is undergoing further acquisitions and boosting its businesses to increase its assets and revenues, or to sell FIX in Waves.Exchange, in which case he will give up his rights to the OptionSwap.
- Please note that no guarantees are provided in the above statements while FIX remains as purely a utility token.
- All final decisions remain with Finamatrix.