Position economics
When a holder subscribes for shares, the position has both a cost basis and a minimum redemption value. The difference between the basis and a minimum redemption value. The difference between the current market value of the position and its current minimum redemption value represents the holder’s remaining downside to floor.
As the redemption floor rises over time, that downside can narrow even if market value remains volatile. Once the minimum redemption value exceeds the holder’s cost basis, the position has a locked-in profit on a redemption basis. At that point, the holder’s minimum realizable value is above entry cost, while market value may continue to appreciate above that protected level.
Guide for this module
There is a simulated, streaming price history with randomized volatility.
Setting the market mode to "bear", "bull", or "super-bull" will adjust the market bias and volatility.
The floor price rises with market value, but never falls.
Simulate the effect the rising floor has on the position's minimum redemption value or risk exposure. Subscribing when the price is near the floor demonstrates clearly the asymmetry of returns.
If the current floor is below the position's cost basis, the position has a locked-in profit on a redemption basis.