Transversal Unemployment Market | TUM
TUM - Transversal Unemployment Market tracks the monthly percent change and correlation in unemployment rates to overall market performance across both traditional and decentralized financial markets. The change in unemployment rates are cross-weighted against a set base of factors measuring the overall health of the broader market.
Mints start at 10 USD worth of ISA and will theoretically trade as a derivative of jobless claims over total financial system health. The higher the claims, the more sensitive TUM is to broad market moves. The lower the claims, the less sensitive the asset trades. Over time - the range will rise or fall based on health, but the derivative representation will remain consistent.
Like all collateralized products on our platform, sRho is used to secure the short position. TUM utilizes a 1.25:1 collateral ratio to secure the position. A 2.5% mint fee is required to mint TUM - with the minter receiving sTUM in return as a receipt.
A 2.5% fee applies to swapping sTUM. sTUM can be bonded and sold to the Treasury. Short-sellers will also pay interest to the pooled long sTUM 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 TUM is below the price when the short was initiated, the aggregated long pool of TUM 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 sTUM 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 sTUM units will be transferred to the short-seller as profit.
Shorting above the total float of TUM in the lending pool is prohibited.
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