Timvi - TBond
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TBond

A TBond is a collateralized bi-currency debt-based interest-bearing bond of instant execution that can be recapitalized. A TBond provides for an annual interest and has an expiration date. It is impossible to withdraw Ethereum (ETH) or Timvi (TMV) or change the holder of the TBond before the expiration date. When the deal is closed (the TBond generation request is executed), a new TBox is created, and the TBond becomes its ‘owner’.

There are two parties that take part in the bond circulation process:
  • the emittent, who pays the 0,5% commission from the obtained ETH;
  • the holder, who receives an annual interest for using TMV.

To issue a TBond the user needs to generate a request. When the request is generated, the system searches for an eligible counterparty (this process is called matching).

Request for a TBond emission

A user wants to receive funds (a leverage) in ETH for an ETH collateral by paying an annual interest.

TBond purchase request

A user wants to exchange ETH to TMV at an internal exchange rate and receive an annual interest for the use of his/her funds in TMV, and also to get a chance to take over the ownership of the TBond’s TBox after its expiration in case of the emittent’s default on payment.

Annual interest rate payout

The interest rate is set by the user who generates the TBond issue request. The rate can vary from 0 to 10%, depending on the number of TBonds issued through a TBox.

The interest is calculated and paid out in the moment when the TBond expires. The system charges a commission, which is 10% by default (the commission can be adjusted). The TBond debt for the whole period is calculated at the moment when the deal is closed.

Expiration of TBonds

Each TBond has an expiration date timestamp. The emittent can redeem the TBond before this time. To do this, he/she needs to deposit the required amount of TMV and the annual interest into the TBond’s TBox, and withdraw the ETH collateral.

At the moment when the TBond expires, only its holder can become the owner of its TBox.

If the emittent hasn’t recovered the debt in TMV before the TBond is expired, the TBond holder becomes the only owner of the TBond’s TBox. The system charges a commission (10% by default, can be adjusted) from the available amount of withdrawal.

Example:

Mike wants to receive a yearly interest on his ETH in TMV. He becomes the counterparty for Steve that wants to issue a TBond and make a TBond issue deal.

Mike transfers ETH to Steve and receives an equivalent amount in TMV. Besides, after the TBond expires, Mike receives an interest of 10% in TMV on the received TMV (the system charges a commission from 0 to 50% on this ‘coupon profit’).