What is BOBT FoF — A?

5 min readOct 14, 2020

I. About BOBT FoF — A

BOBT FoF — A（BF-A for short）, it is a fund product based on the BOBT mining pool issued and managed by E-Torex Capital. BF-A gathers funds from institutional investors and invests them in the BOBT mining pool. E-Torex Capital try to maximize daily mining profit under the operation of the professional team. And will give the profit back to the investors in the form of continuous repurchase BF-A in the secondary market and burn it.

BF-A is a kind of equity token, which represents that investors have the right to obtain mining profit from investing BF-A. The number of BF-A holdings represents the profitable shares.

II. Why do we issue BF-A？

Firstly, we think BOBT mining pool is a profitable and risk controllable investment. It is unique since it combines the radar model with the platform token of the exchange. The economic model of BOBT mining pool is benign. Platform token is no longer a “key” used to “lock assets” or obtain certain rights and interests, but becomes a “bond of interest” between exchange and users, allowing both sides to become a community of interests in the form of mining.

III. Information of BF-A

Name：BOBT FoF — A （BF-A for short）

Total tokens：5 million

Total Issuance：500,000 USDT, no additional issuing

Basic Chain：ERC-20

Issue Price：0.1 USDT

V. What’s the advantage of investing BF-A?

BOBT FoF will take BOBT as the main investment subject and will be managed by E-Torex Capital uniformly. E-Torex Capital is responsible for daily operations such as open position of BOBT, creating sub-accounts, and adjusting positions on a daily basis. Through professional management and batch operations, it will maximize daily mining income.

First, BOBT FoF has a large amount of funds and long currency holding period. Therefore, in the process of opening and closing BOBT positions, the cost is smoother, and the short-term fluctuations of the token price will not affect the stability of the income.

Second, the daily position adjustment and sub-account creation are all handled by a professional team, eliminating the trouble that users need to constantly enter the mining pool to adjust positions in the sub-accounts.

Third, the income of BOBT FoF remains open and transparent, and will be disclosed to the community everyday.

Fourth, the mining income of BOBT FoF will be returned to investors in the form of “triple repurchase and destruction” in accordance with the rules. Therefore, BF-A will not directly issue proceeds to investors, but will convert the proceeds to repurchase BF-A and then burn it. Since the total amount of BF-A is constant at 5 million, as the repurchase proceeds, the price of BF-A will increase naturally.

VI. Triple repurchase and destruction of BF-A

First:daily repurchase and destruction of repurchase pool

E-Torex Capital will put 20% of the total raised funds into the repurchase pool from the issuance date of BF-A. The funds in the repurchase pool will repurchase in the secondary market daily, and the repurchased BF-A will be transferred to the black hole address and destroyed permanently.

For example:
The total funds raised by BF-A are 500,000 USDT, and the funds in the repurchase pool are 100,000 USDT.

The daily repurchase amount is 5% of the remaining funds in the repurchase pool.

Then the repurchase amount on the first day is: 100,000 * 5% = 5,000USDT

After that, the remaining funds in the repurchase pool are 100,000–5,000 = 95,000 USDT

Then the repurchase amount on the second day is: 95,000 * 5% = 4,750USDT

Second: daily repurchase and destruction of mining revenue

The USDT produced by daily mining will be used to repurchase BF-A entirely in the secondary market for. The repurchased BF-A will transferred to the black hole address and be destroyed permanently .

For example:

The USDT obtained from mining on a certain day is 800USDT, at this time the the secondary market price of BF-A is 0.12USDT

Then the number of BF-A that can be repurchased and destroyed by mining revenue is: 800 / 0.12 = 6,667

Third: The added value of the net value of the fund repurchase and destruction every week

Third: The added value of the net value of the fund repurchase and destruction every week

The total net value of the BF-A fund is audited weekly.

The formula for calculating the total net value of BF-A is:

Total fund net value = total BOBT held by the fund * current BOBT price

The calculation formula of BF-A total net added value is:

Fund’s net added value = total fund net value-400,000 USDT (cost of opening BOBT position)

We can regard the net added value of the fund as income, and this part of the income will be distributed as follows:

10% of the returns is used to purchase and burn BF-A in the secondary market.

5% of the returns will be allocated to the E-Torex Capital Foundation for operation

The remaining 85% of the returns will be retained to next week

For example:

After a week of mining, the total number of BOBT held by the BF-A fund at this time is 101,400, and the BOBT secondary market price at this time is 4.5 USDT.

Then the total net value of the fund: 101,400 * 4.5 = 456,300USDT

Then the total net added value of the fund is: 456,300–400,000 = 56,300USDT

The repurchase amount this week is: 56,300 * 10% = 5,630 USDT

If the price of BF-A is 0.13USDT at this time, the number of BF-A repurchased and destroyed is 43,308.