Timvi - TBox
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TBox

Any user can create a TBox and become its owner. TBox – is a blockchain account where the user deposits Ethereum (ETH) to emit Timvi (TMV) tokens. Tokens are emitted according to the system's internal rate

The user can put ETH on your TBox and someone else’s TBox. Moreover, any user can deposit TMV tokens on his/her TBox and burn them without any fees. However, the amount of TMV you put in your TBox cannot exceed the amount of withdrawn ones.

The owner of a TBox can:
  • Transfer rights to your TBox to another user through the procedure of changing the owner (ERC-721 Transfer).
  • Close the TBox and return the ETH deposit at the 1 TMV = $1 exchange rate. The user needs to return the amount of TMV you have withdrawn to your TBox to close it.
  • Withdraw available funds in ETH (more details below).
Depending on the amount of ETH and possibility of recapitalization, TBox can be:
  • Safe
  • Toxic
  • Dusty
  • Frozen

Safe TBox – is a TBox that is not applicable to recapitalization (more details below).

Toxic TBox – is a TBox, which collateral is between the minimum and maximum toxicity threshold.

The thresholds are calculated accordingly:
  • The minimum threshold – is a sum of 100% collateral and shared fee. By default, the minimum toxicity threshold is 106%.
  • The maximum threshold is equal to the value at which a new TBox becomes toxic after a user withdraws TMV in an amount that equals to the ratio of maxRatio to the ETH locked into the TBox in case of a 2% ETH price drop;

Dusty TBox – is a TBox, in which the amount of locked ETH is less than $3.

Minimal possible collateral of a TBox is in the margin from 150% to 109,78% and depends on the global collateral of the system and other parameters.

The global collateral is calculated according to the formula below:

Target and starting value is approximately 150%.

maxRatio is a threshold value for stablecoin emission calculated taking into account a set total commission for recapitalization the following way:

  • at a 6% commission, maxRatio is ~115,21%
  • at a 1% commission, maxRatio is ~109,78%

Note: 1% < commission for recapitalization ≤ 6%

Percent of usage of a TBox indicates ratio of TMV tokens withdrawn from TBox to tokens available for withdrawal. The number of TMVs available for withdrawal changes in real time and depends on the Global collateral. The bigger the global collateral, the more TMVs are available for withdrawal from all TBoxes.

If the ETH rate falls, the TMV rate collateral is supported by recapitalization. It is also a tool of monetization of the project.

Frozen TBox – is a TBox, which collateral is below the minimum threshold of recapitalization. There is no withdrawal function and no possibility of recapitalization for such a TBox.

Recapitalization

Recapitalization is a regulated procedure of increasing collateral of another person’s toxic TBox through “burning” of TMVs from the balance of the person initiating recapitalization. During this procedure the deposit is spent and the value of withdrawn TMV on a toxic TBox decreases.

How it works:

The person initiating the recapitalization indicates the amount of to-be-burnt TMVs and receives their equivalent in ETH at the current internal exchange rate plus a reward (1 to 6%, 3% by default). The received sum in ETH and the system commission (0 to 3%, 3% by default) are subtracted from the deposit of the toxic TBox account.

Note: the system commission cannot be bigger than a reward for the person initiating recapitalization. The total commission does not exceed 6% of the transaction value.

Recapitalization conditions:

Two conditions must be met to conduct capitalization:
  • A TBox must be toxic;
  • The TBox collateral after the first recapitalization did not exceed the maxRatio.
Estimated value of the collateral at which TBox becomes toxic and can be recapitalized:
  • if the commission is 6%, the recapitalization is initiated when the TBox collateral value varies from 112,91% to 106% and is executed until the collateral value reaches 115,21%.
  • If the commission is 1%, the recapitalization is initiated when the TBox collateral value varies from 107,59% to 101% and is executed until the collateral value reaches 109,78%.

To keep the TBox safe during ETH price drops, the ETH holder should increase the TBox collateral by depositing more ETH or TMV.

For instance:

Mike has saved up for a car in ETH, but he does not want to sell ETH. Instead he opens a TBox with a 150% collateral. Highest loss within the first recapitalization amounts to 3,3% from initially locked ETH in conversion to dollars, including the TMV left after the first recapitalization.

Thus, to close this TBox, the owner needs to make a deposit in TMV that equals to the amount of withdrawal minus the recapitalization value. Mike receives his TMV and exchanges them to USD on a currency exchange and purchases a car.

If no recapitalization has taken place, then Mike only pays a currency exchange commission to exchange TMV to USD. He maintains his savings in ETH and purchases a car. If ETH has grown during this time, Mike’s deposit has grown in the USD equivalent respectively.

In addition, Mike does not pay any annual commissions or service charges like he would in the case with ordinary loan agreements.