Traditional Capital Inflow | TCI

The TCI token shows a warp map of all components taken into account when establishing asset pricing.

TCI - Traditional Capital Inflow - No Margin No Leverage - Tracks positive notional value changes in the broad market. A positive notional value change DoD equates to a positive move on TCI. A negative notional value change equates to a negative move on TCI. An additional small correlation value between MoM and DoD value changes has been added to allow for broader long-term trends to form during periods of sustained market moves. As such, it can act as a shorter to mid-term trading tool based on portfolio bias of the aforementioned. TCI is the inverse of TCO.

Mints start at 10 USD worth of ISA and will theoretically trade as a summation of the aforementioned ratios. The higher the notional value, the more sensitive TCI is towards positive moves. The lower the correlation, the less sensitive the asset trades. Over time - the range will rise or fall based on the relationship between the two, but the bias representation will remain consistent.

Like all collateralized products on our platform, sRho is used to secure the short position. TCI utilizes a 2:1 collateral ratio to secure the position. A 2.5% mint fee is required to mint TCI - with the minter receiving sTCI in return as a receipt.

A 2.5% fee applies to swapping sTCI. sTCI can be bonded and sold to the Treasury. Short-sellers will also pay interest to the pooled long sTCI at a daily interest rate of 0.2% per day - which will be paid for in sRHO. This daily interest will be calculated at the time of establishing the short by entering the maximum number of days you will be short for. Once the time limit is up - the short contract will expire and the short closed. If TCI is below the price when the short was initiated, the aggregated long pool of TCI will pay the unit count worth of profit to the now closed short holder. The time interest the short paid to the collected pool of longs will then be distributed to the longs proportional to their positional unit count.

However, the interest will only be paid to the long holders that were in the pool at the time the short was established. If a short-seller chooses to close out their position at a loss, the collateral lost will be divided among all long sTCI unit holders that were in the pool at the time the short was established. If the short-seller closes out their position at a profit, the percentage of the profit will be divided amongst all long sTCI and the appropriate sTCI units will be transferred to the short-seller as profit.

Shorting above the total float of TCI in the lending pool is prohibited.