What is recapitalization?
Recapitalization — is one of the tools of Timvi project monetization. Recapitalization is the process of increasing someone’s toxic TBox collateral by “burning” TMV from your balance.
You can monitor the state of all the TBox on the platform. If you see that any of the TBox has become toxic, you can “burn” some of your TMV by transferring them to a toxic TBox and increase its collateral. This is how recapitalization works.
After that, a toxic TBox will become safe again, and you’ll get the equivalent of your “burned” TMV in ETH at the current internal exchange rate. You’ll also receive a 1 to 6% reward for recapitalization, the reward is 3% by default.
The received sum in ETH and the system commission from 0% to 3% are taken from the deposit of the toxic TBox that has been recapitalized. Please note that the system commission cannot be bigger than a reward for recapitalization.
Recapitalization criteria:
- The TBox collateral value is within the range of recapitalization (basically, the TBox is toxic);
- The collateral of the TBox did not exceed the maximum toxicity threshold after the first recapitalization.
You can recapitalize toxic TBox and thus earn on the platform. Moreover, recapitalization secures the TMV collateral.
