Open-ended price discovery
The structure is designed to support repeated cycles of price discovery. Shares may appreciate as participation expands, retrace toward the minimum redemption value during periods of redemption, and then re-enter a new phase of appreciation if reserve growth resumes.
Because the redemption floor is nondecreasing, each sufficiently strong advance can leave behind a higher minimum redemption value than before. In that sense, the structure can progress through successive upward resets over time. The pricing framework therefore has no inherent terminal ceiling, provided reserve support and participation continue to expand.
Guide for this module
The infinite loop demonstrates the effect of asymmetric return characteristics.
This is a simulated price chart, showing the market value of the shares over time, with the redemption floor rising beneath it.
The y-axis and x-axis ticks are intentionally left off to show that relative risk & returns remain the same at all scales.