What is “Payouts”?
When an STF becomes profitable, the STF Trader gets an option to distribute the part of, or the whole profit to the STF Investors. The amount of profit distributed to investors is called “Payouts”.
How is payout calculated?
STF payout is calculated for every investor. An investor will receive payouts of an STF token if they are in profit at the time of payout distribution. In case an investor is in a loss at the time of distribution, they will not receive any payout for that particular STF.
An STF investor’s profit is calculated based on their average buy price of an STF.
Example: You buy 100 STF tokens worth 1 USDT each, so your portfolio is worth 100 USDT. The STF performs well, and its token price goes to 2 USDT. So your 100 STF tokens are now worth 200 USDT, i.e., you make a profit of 100 USDT.
In the event of a payout, your STF tokens worth 100 USDT will be liquidated to give you your profit of 100 USDT. After the payout distribution, you will be left with 50 STF tokens worth your original investment, i.e., the principal amount of 100 USDT.
When will I get payouts?
An STF Investor will get payouts when the STF Trader distributes a percentage of, or whole profit to investors.
Alternately, STF Investors also have the option to sell/burn the STF tokens and claim profits.
For example: You buy 100 STF tokens worth 1 USDT each, so your portfolio is worth 100 USDT. The price goes up to 2 USDT, so your 100 STF tokens are now worth 200 USDT, and you make a profit of 100 USDT. Let’s say, the STF Trader decides to distribute 50% of profits as a payout. So, you will receive 50% of 100 USDT profit, i.e., 50 USDT as payouts.
Note: Platform fee and STF trader commission will be deducted from the payouts.
You will receive payouts in USDT, and it will appear in the “Funds” section of WazirX.
Your STF token holdings will now be revised based on the amount of payout you receive. For example, after you receive a payout of 50 USDT, your STF token holding becomes worth 150 USDT. At the current price of 2 USDT, your token holding comes down to 75 STF tokens from 100.
You will also get a profit summary report with the payout details.
For STF Traders:
An STF Trader can distribute a minimum of 10 USDT out of profits as payouts. An STF Trader can strategically decide what percentage of the profit they want to give away.
An STF Trader will earn a commission if the STF is profitable. The commission will be automatically from the payouts.
Traders will receive a commission in the form of their own STF tokens, and their parent account will get credited with the commission.