Machine Generated Market Sentiment | MGMS

The token design uses the synapses from a multi layer hexbin chart which weights the different components and their effects on the token itself on a DoD percent change. In addition, the singular dark node in the center, shows mean reversion theory when enough data points are taken into account.

Extrapolating out the market sentiment algorithms weighting our synthetic economy values, we also offer a mintable asset that tracks the projected aggregated sentiments of the US market on a trailing 30 day period cross-weighted by a 10-day measure. The overall sentiment is then weighted to the broader index with results ratioed against the broader crypto market.

Mints start at 10 USD worth of ISA and will theoretically fluctuate daily between 7 and 13 in most cases, depending on the cross-weighted sentiments pulled from the algorithm. More extreme range bounds are possible but unlikely on a short-term basis, given the fact that pricing is reflected on a trailing measure. Over time - the range will rise or fall, but the spread will remain relatively consistent. However, extra caution has been taken while establishing the following collateral ratio for short-selling below.

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

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

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