Strategic Partner

To create this contract, the Partner pledges value in the form of JNT, by locking the JNT in a smart contract. An additional buffer is required to account for price movement in JNT, as well as the price of the asset the contract is denoted in (in this case, USD).

Network User

The user then chooses to enter into this contract for a US$ 1,000 premium (10%). The user is paying this premium to ensure they can redeem US$ 10,000 in 1 months time.

The user sends 1 BTC (valued at US$ 11,000 at the time) into the smart contract, and receives one US$ 10,000 CryptoDepository Receipt token.

Jibrel DAO

In the event that the underlying value of the asset deviates, or the JNT pledge becomes insufficient, the Partner is required to provide additional JNT.

During this period, while the Pledge value is insufficient, the user can exercise the contract at any time, receiving the full value back (including the premium).

This is overseen by a collection of smart contracts known as the Jibrel DAO.

Jibrel

This system requires technological and regulatory build-out / governance. This role is undertaken by the Jibrel Team, with the ambition of winding down their involvement in developing and managing the system over the medium to longer term.