Delta Global Energy Sentiments | DGES

DGES - Delta Global Energy Sentiment - Tracks overall sentiment changes from period to period. Second derivative. Contrasts sentiments against changes in overall notional pricing volume.

Like the underlying market, directional bias has a correlation towards positive or negative value shifts. Positive changes in sentiments and notional pricing volume moves correlate to asset appreciation whereas negative changes in sentiments and notional pricing volume moves result in asset depreciation.

Mints start at 10 USD worth of ISA and will theoretically trade as a summation of the aforementioned ratio of sentiment to changes in notional pricing volume. The longer a positive notional pricing volume move is sustained, the more sensitive DGES becomes towards positive moves and positive shifts in sentiments. The shorter a positive notional pricing volume move is sustained - or if a negative move is made - paired with negative shifts in sentiments, the slower the asset appreciates or tends towards depreciation. Over time - the range will rise or fall based on sustained changes, however, the bias representation of ratios will remain consistent and seek to converge towards lower volatility trends.

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

A 2.5% fee applies to swapping sDGES. sDGES can be bonded and sold to the Treasury. Short-sellers will also pay interest to the pooled long sDGES 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 DGES is below the price when the short was initiated, the aggregated long pool of DGES 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 sDGES 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 sDGES and the appropriate sDGES units will be transferred to the short-seller as profit.

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

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