Financial Innovation Market | FIM
FIM - Financial Innovation Market tracks financial innovation in terms of payment processing growth and integration of crypto related assets. As crypto expands more into the everyday consumer’s field of view, volatility could shift away from risk asset behavior. As such, growth could be substantial in terms of the overall crypto market capitalization - irrespective of pricing of said assets.
FIM takes into account this expansion of acceptance and cross-weights it against the ratio preference of traditional payment methods. As acceptance grows - this asset is structured to appreciate in value. However, volatility is baked into the product, therefore it can have wider fluctuations based on overall market perception of risk associated with crypto in general. As such, it can act as a shorter to mid-term trading tool based on portfolio bias of the aforementioned.
Mints start at 10 USD worth of ISA and will theoretically trade as a summation of total integration, acceptance, risk association, and preference of crypto related payments. The higher the growth in the area, the more sensitive FIM is towards positive moves. The lower the growth, the less sensitive the asset trades. Over time - the range will rise or fall based on growth, but the bias representation will remain consistent.
Like all collateralized products on our platform, sRho is used to secure the short position. FIM utilizes a 1.75:1 collateral ratio to secure the position. A 2.5% mint fee is required to mint FIM - with the minter receiving sFIM in return as a receipt.
A 2.5% fee applies to swapping sFIM. sFIM can be bonded and sold to the Treasury. Short-sellers will also pay interest to the pooled long sFIM 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 FIM is below the price when the short was initiated, the aggregated long pool of FIM 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 sFIM 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-holders and the appropriate sFIM units will be transferred to the short-seller as profit.
Shorting above the total float of FIM in the lending pool is prohibited.
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