The very FIRST launchpad with OTC.
Oxbull is proud to be the first launchpad to feature an OTC for Oxbull Investors!
What is OTC?
OTC (short for “over-the-counter”) refers to the buying and selling of cryptocurrencies directly between parties. Specifically, we’re unlocking buying and selling of project allocation for our investors.
What does the OTC do?
We understand that investment appetite may differ across each investor, therefore when an investor is not contributing to a project due to lack of interest, it translates to wasted allocation. On the other hand, many investors with interest to contribute are missing out due to lack of access. In Oxbull, we say it’s time to put a stop to this market inefficiency: what if we could transfer allocation to another investor that would like to contribute? The answer is clear: OTC in Oxbull.
Great! Is the OTC available to me?
As we have recently launched this OTC, current access to the OTC marketplace is made exclusively available to Oxbull and KWAI Labs Tier 1 Investors and Private Sale Pass holders.
At present, only Tier 1 Investors are eligible to create listings. However, both Tier 1 Investors and Private Sale Pass holders can make purchases from these listings.
Oxbull OTC (BETA): https://oxbull.tech/app/otc
IMPORTANT NOTES: Due to the nature of the Oversubscribe Method and existing fee structure, investors are advised to pay special attention towards the calculation of effective contribution, refunds and fees.
Create Listing
Using the OTC, you are able to sell your allocation by create a listing.
This guide will focus on explaining the split, refund and fee collection of a listing.
For ease of illustration, we will discuss the process using an example, where we attempt to raise allocation for an imaginary project: Oldbull.tech.
Assume an allocation of Oldbull.tech that is currently available:
An investor, at their discretion, may create a listing utilizing a portion or their entire allocation, with a markup margin of their choice. In this example, said investor has listed their full allocation of 500 USDT, with a 100 USDT markup, resulting in a listing price of 600 USDT:
Once the investor has defined a price, the markup and markup % would be automatically computed in the UI.
The buyer of your listing will only get the allocation of 500 USDT, even though they need to pay 600 USDT, the price you’ve defined. Please Do note that this allocation is not final due to the existing oversubscribe method, where proportioned refunds will be done in the event of overflowed contribution pool capacity.
In such event, allocation would only be partially consumed, hence we would also refund your markup proportionally according to Refund %.
Markup refund is split according to the refund %.
Returning to the earlier example, should the the project raise concludes and effective contribution is 300 USDT, that would give us a refund percentage of 40%.
As illustrated, the markup would then being split according to the refund percentage. In this example the final markup would then be 60 USDT, as only 60% of the intended allocation turns into effective contribution.
Platform Fee
The final markup earnings shall be subject to a 5% platform fee and the earnings would be credited back to the original listing investor after the project raise concludes.
Private Fee for Private Sale
On the other hand, a 3% Private Fee would be imposed on top of any Private Sale allocation.
This 3% private fee is collected from the buyer. It’s however important for seller to note that the 3% private fee would increase the Listing Price. We’ll take a closer look using the previous oldbull.tech example.
While the private fee is refundable, but as the listing investor (Seller), they will only receive markup refunds.
TL;DR
1. An Investor’s markup would be split according to the final effective contribution and refund proportions.
2. Refund proportion is calculated: effective contribution ÷ allocation.
3. Final earnings are subjected to a 5% platform fee. Whilst a 3% private fee would be added on to the investor’s listing allocation and added towards the final listing price for private sale.
Purchasing a Listing and Contributing
Using the OTC, you are able to buy and contribute to a project on demand.
This guide will explain on the effective contribution, allocation, and refund when purchasing a listing.
Using a similar illustration, assume the earlier listing now from the buyer’s perspective in the OTC marketplace:
Definition:
Price: the price to be paid to purchase this listing
Allocation: the allocation an investor will gain upon purchase
Markup: The margin difference between the price and allocation
Suppose an investor purchased said listing at 600 USDT, the contribution of 500 USDT shall be made directly to the project pool upon purchase.
IMPORTANT NOTE: Be sure to differentiate price and allocation, where 500 USDT is the stated allocation, NOT the price.
Upon the conclusion of the project, refunds may be issued in the event of oversubscription (oversub). In such cases, only a portion of the allocation will be utilized. Hence, a proportionate refund will be done for any unused allocation along with the markup. The refund percentage will be calculated using the formula (effective contribution ÷ allocation), which will determine the allocation splits.
Refunds are split according to the refund %.
Continuing with our example, suppose that after the project concludes, the effective contribution is 300 USDT, resulting in a refund portion of 40%.
As demonstrated, the markup will be split according to the refund percentage. In this example, the refundable markup is 40 USDT, calculated as 40% of the original markup (100 USDT x 40%). Additionally, the unused allocation of 200 USDT will be refunded, resulting in a total refund of 240 USDT.
Private Sale
If the project is raised via Private Sale, a Private Fee 3% would be collected.
Similarly, In the event where the project is a Private Sale, a 3% fee is imposed upon the allocation amount.
Suppose Oldbull.tech is a Private Sale, the following will happen:
1. Allocation will remain the same. (500 USDT)
2. Listing price will be increased to 615 USDT (500 USDT + 100 USDT + 15 USDT)
Private Fee is refundable, and follows the same principles. Circling back to our previous example of 40% refund percentage, the refundable private fee will then be 6 USDT.
You might notice the amount of total refund has been increased. This is consistent with the expectation as the listing price has increased initially.
TL;DR
1. Contribution are being made directly upon successful listing purchase.
2. Allocation and listing price is different, contribution amount is based on the indicated allocation in the listing.
3. After a sale concludes, suppose there’s a refund, the investor will receive refund from both unused allocation and markup.
4. If the project is a private sale, a 3% private fee based on allocation amount would be collected and is refundable after the project concludes.
Please follow the official Oxbull telegram group for further details and/or if there are any further queries.
Disclaimer
Our content is intended to be used as information and education purposes only. It is very essential to do your own research and analysis before doing any investment decision or otherwise. Do Your Own Research.
Information is accurate at time of writing and can be subject to change.
Oxbull.Tech shall not be liable, whether in contract, tort (including negligence) or otherwise, in respect of any damages and/or expenses and/or any losses you may suffer arising out of such information or any reliance you may place upon such information.
Any further arrangements between you and any third parties contacted via the Website/Affiliated links are at your sole risk.
