Dex Evaluation System In-Depth & FAQ

  1. Home
  2. Knowledge Base
  3. Dex Autonomous Trading
  4. Dex Evaluation System In-Depth & FAQ

Intro to the New Evaluation System

This article aims to explain in detail, the ins and outs of the new evaluation system. Hopefully after reading this entire article, you will have a full understanding of how it works and why it’s beneficial for the long term sustainability.

A known hurdle for Dex since inception was the possibility that the adoption, and subsequent valuation, of Drops would grow disproportionately fast compared to other currencies it is pinned to. The combination of Dex and Truwho seeks to end this. The solution to ensure long term scalability and sustainability involves more accurately tying the value of Drops to its related currencies, however prior to the Truwho partnership implementing any such solution would have opened the platform to manipulation. Truwho addresses this risk by ensuring that no person can create infinite fake accounts for the purpose of gaming the system. When a person registers with Truwho they are assigned a unique number known as a TruID, going forward this TruID number will be required for account creation for Dropil users wanting to utilize Dex. Your Dex account will only require this number; your personal information will not be shared with Dropil. The updated Dex valuation methods will seek to ensure that the $USD value of funds being traded by Dex are kept closer to a 1:1 ratio with the $USD equivalent of capital deposited into the Dex user portal, thus ensuring the sustainability of Dex.

For those that want to read the original press release regarding this topic Click Here.

FAQ

When is the new system being put in place?

The official date when the system will be live has not been announced yet. The system depends on the Truwho platform being live so users can become KYC verified and link their TruID to their Dropil account. The Truwho platform and ICO launch is scheduled to begin within the first half of September, so no later than September 15th.  The day the Truwho KYC platform goes live is the same day that the new system will go into place and users’ funds will be evaluated for the first time.

What is the main point that is changing to the new system?

The capital deposited in Dex will no longer be re-evaluated at the current 24-hour average at the end of each 15-day cycle. The only way to have your capital in Dex re-evaluated at current 24-hour average is by pulling all of your funds out of Dex and waiting at least 90 days before depositing them back into Dex.

How and when do I have to become KYC verified?

All new users will be required to become KYC verified prior to starting Dex for the first time. Existing users will not be required to become KYC verified as long as they don’t make any changes to Dex besides withdrawing from Dex. Users will be able to “set it and forget it” without becoming KYC verified. Users will still be able to withdraw from Dex without being KYC verified. Only once a user starts a NEW Dex profile, wants to add Drops to Dex, or wants to update their Dex settings will they be required to become KYC verified and connect their Truwho TruID to their Dropil account.

How do I become KYC verified?

KYC verification will take place through a partner company called Truwho. Users will be required to submit basic information, a photocopy of a valid ID, and a selfie with that ID while also holding up a piece of paper with a uniquely generated code written on it. Once verified on Truwho, users will obtain a TruID which they will have to link to their Dropil account inside the user portal. We will create written and video tutorials on how to complete the entire process to make it as simple as possible for our users.

How many accounts can I have?

Each person may have up to three accounts – one per risk level: safe, moderate, and aggressive. Some users may also want to have additional accounts that they manage for family members such as spouses and kids. The procedure for this will be outlined in another section below.

What happens when I have multiple accounts?

When a user has multiple accounts, all of the accounts tied to that user’s TruID are synced to the same cycle timeframe. This means that if a user has three accounts, all three accounts have the same payout date. Additionally, withdrawals from any of the three accounts will be synced across the accounts with the same 90-day withdrawal period. More information on the 90-day withdrawal period is outlined in another section below.

How can I set up accounts for a family member such as my spouse or kids?

Users will be able to set up accounts for family members by simply syncing the account to any of their active Dex profiles. The synced account will be treated as if it were a part of the main account with the same settings, payout date, etc. The purpose of the separate account is to separate funds to make it easy to keep track of which funds belong to who. With this system in place, users can create a separate fund for their family members, but there is no incentive to create separate accounts unless for this purpose due to the fact that the accounts are synced identically. When the system is put in place, we will create a tutorial on how to do this.

How are my initial / first deposit Dex funds calculated?

The first deposit into Dex is calculated by taking the 24-hour average value of the Drops deposited into Dex at that time. For example, if a user deposits 100,000 Drops into Dex and Drops are worth $0.005 at the time, they will start Dex with a USD evaluation of $500.

What is the 90-day withdrawal period and why is it being put in place?

The 90-day withdrawal period is the system that is being put in place to prevent manipulation of funds by pulling out funds or cancelling Dex and putting them back into Dex during price surges. When a user initiates a withdrawal from Dex, the following is noted in our system: Date, number of Drops withdrawn, proportional USD value of user’s total Dex funds. When the withdrawal is made, there is a 90-day timer placed on the funds withdrawn. If the user returns within a 90-day period, the funds that are deposited back into Dex will be evaluated at the same rate as when they were withdrawn. The bottom of this article will outline various scenarios of this system.

What happens if I have 100% recontribution enabled?

Users that have 100% recontribution enabled will see their USD funds in Dex increase solely based on the performance of Dex against their USD capital, versus the current system where it’s based on the performance of Dex and also the price of Drops. For example, if you have $1,000 in Dex and your payout is 10%, then you will now have $1,100 in Dex. The price of Drops is completely irrelevant. You will receive a payout in Drops based on the current price of Drops. If the current price of Drops was $1, then you would receive 100 Drops ($100 @ $1 per Drop)

What happens if I withdraw all payouts? Are separate withdrawals treated differently?

Each individual withdrawal that occurs is assigned its own set of parameters as outlined above: Date, number of Drops, and USD value. Any amount of Drops that are deposited back into Dex within a 90 day window will be treated as first out, first back in. For example, if a user made three separate withdrawals of 10,000 Drops each 10 days apart and the prices at the three different dates were $1, $2, and $3 respectively, then the first 10,000 Drops returned would be valued at $1, the second at $2, and the third at $3. Any Drops deposited in excess of the 30,000 originally withdrawn will be evaluated at the current 24 hour average price.

What happens if I setup partial recontribute and partial withdraw?

This is a combination of the previous two questions. The funds that are deposited back into Dex will be evaluated at current market price and the funds that are withdrawn automatically will receive a 90 day timer with the previously mentioned parameters noted.

What happens if I withdraw some of my Drops from an active Dex profile? What happens if I cancel Dex?

Both of these scenarios would simply be treated as a withdrawal from Dex. The funds withdrawn will be assigned a 90-day timer and the previously mentioned parameters will be noted.

What happens if I add Drops to an active Dex profile?
  • No existing 90-day timers - Any new funds added to Dex that aren’t tied to a 90-day timer will be evaluated and deposited into Dex based on the current 24-hour average price listed in the Dropil portal. For example, if a user added 100,000 Drops at $0.10 into Dex when they setup Dex for the first time, they would have $10,000 in Dex. If they later added an additional 10,000 Drops when the price of Drops is $1, they would now have $20,000 in Dex with 110,000 Drops deposited.

 

  • One existing 90-day timer
    • User adds less than was withdrawn - A proportional amount of funds will be added to Dex based on the amount returned versus the amount withdrawn. For example, if a user withdrew 1,000 Drops worth $1,000 in Dex and returned with 500 Drops within 90 days, the funds added to Dex would be $500.
    • User adds the same amount as was withdrawn - The exact amount of Drops and USD funds will be added back to Dex as were withdrawn. For example, if a user withdrew 1,000 Drops worth $1,000 in Dex and returned with 1,000 Drops within 90 days, the funds added to Dex would be $1,000.
    • User adds more than the amount that was withdrawn - The original amount withdrawn would be added to Dex and any additional Drops added to Dex would be evaluated at current 24-hour average price. For example, if a user withdrew 1,000 Drops worth $1,000 in Dex and returned with 1,500 Drops when the price of Drops is $1, the funds added to Dex would be $1,000 for the original withdrawn funds + $500 (500 Drops @ $1) additional funds.

 

  • Multiple existing 90-day timers
    • With multiple existing 90-day timers, the above scenarios would be replicated with a slight difference. The funds being deposited into Dex would be valued at a rate of first withdrawn, first returned. For example, if a user made three separate withdrawals of 10,000 Drops each 10 days apart and the prices at the three different dates were $1, $2, and $3 respectively, then the first 10,000 Drops returned would be valued at $1, the second at $2, and the third at $3. Any Drops deposited in excess of the 30,000 originally withdrawn will be evaluated at the current 24 hour average price.
What happens if I withdraw all of my Drops from Dex and keep them out for 90 days? How can I have my Dex capital re-evaluated?

If all funds are removed from Dex for at least 90 days, the next time the user starts a Dex profile, the Drops will be evaluated at the current 24-hour average.

How are payouts calculated?

Payouts are calculated based on the USD funds in Dex. The amount of Drops received are based on the 24-hour average price of Drops. For example, if a user has $1,000 in Dex and receives a 10% payout and the price of Drops is currently $1, then the user will receive a $100 ($1,000 * 10%) payout and 100 Drops ($100 / $1).

What happens if my cycle profits are negative?

If cycle profits are negative, then the amount of USD funds lost would be converted to Drops and withdrawn from the user account at current 24-hour average price. For example, if a user has 50,000 Drops worth $1,000 in Dex and there is a 10% loss and the current price of Drops is $1, then the user would lose $100 in Dex and 100 Drops would be withdrawn from Dex. The user would still have 49,900 Drops and $900 in Dex.

How will I keep track of my withdrawn funds and timers?

We will implement a system that will make it easy to track all withdrawals and active 90-day timers so users can plan accordingly.

Scenarios

DETAILED SCENARIOS:

There are various scenarios that may occur and we will use John as an example to outline these scenarios. Each time a user withdraws from Dex, the following is noted:

  1. Date of withdrawal
  2. Number of Drops withdrawn
  3. $USD amount of Dex capital withdrawn

In all scenarios, John originally has 100,000 Drops / $100,000 USD capital deposited in Dex.

SCENARIO 1

John withdraws all of his Drops from Dex ($100,000 USD equivalent).
A. John returns before 90 days have passed and deposits 100,000 Drops into Dex. Because 90 days have not passed, the 100,000 Drops are valued at the same $1 per Drop as when they were withdrawn. John now has 100,000 Drops / $100,000 USD capital deposited in Dex and his first cycle begins.

B. John returns before 90 days have passed and deposits 50,000 Drops into Dex. Because 90 days have not passed, the 50,000 Drops are valued at the same $1 per Drop as when they were withdrawn. John now has 50,000 Drops / $50,000 USD capital deposited in Dex and his first cycle begins

C. John returns before 90 days have passed and deposits 150,000 Drops into Dex. Because 90 days have not passed and he originally had 100,000 Drops valued at $100,000 in Dex when he withdrew, 100,000 / 150,000 Drops will be valued at $1 per Drop and the remaining 50,000 Drops will be valued at the current 24-hour average price. In this scenario, when he returns, Drops are now worth $1.50. John now has 100,000 ($100,000 USD @ $1 per Drop) Drops + 50,000 ($75,000 @ $1.50 per Drop) Drops for a total of 150,000 Drops / $175,000 USD capital deposited in Dex and his first cycle begins.

D. John returns after 90 days have passed and deposits 100,000 Drops into Dex. Because at least 90 days have passed, the Drops are valued at the current 24-hour average price. In this scenario, Drops are now worth $1.50. John now has 100,000 Drops / $150,000 USD capital deposited in Dex and his first cycle begins.

SCENARIO 2

John withdraws 50,000 Drops from Dex ($50,000 USD Equivalent).
A. If John returns at any time prior to 90 days passing, any Drops deposited up to a maximum of 50,000 Drops will be valued at $1 per Drop. Any Drops deposited in excess of 50,000 will be valued at the current 24-hour average price.

B. If John returns at any time after 90 days have passed, any Drops deposited into Dex will be valued at the current 24-hour average price.

SCENARIO 3

John adds an additional 100,000 Drops to Dex.
A. The additional 100,000 Drops added to Dex are valued at the current 24-hour average price. In this scenario, the current 24-hour average is $1.50. The $USD capital amount in Dex is now $100,000 + $150,000 = $250,000 USD and there are a total of 200,000 Drops in Dex

Specific Example

Initial deposits into Dex

  • User deposits 100,000 Drops @ $1 = $100,000
  • User deposits 25,000 Drops @ $2 = $50,000
  • User deposits 10,000 Drops @ $3 = $30,000

Total funds = $180,000 / 135,000 Drops (dollar cost average = $1.33)

Withdrawal #1

User withdraws 10,000 Drops

  • 10,000 / 135,000 Drops = 7.407%
  • 7.407% of $180,000 = $13,333.33

90-Day Timer #1

10,000 Drops withdrawn worth $13,333.33 USD

Total funds in Dex = $166,666.67 / 125,000 Drops (dollar cost average = $1.33)

Withdrawal #2

User withdraws 20,000 Drops

  • 20,000 / 125,000 Drops = 16%
  • 16% of $166,666.67 = $26,666.67

90-Day Timer #2

20,000 Drops withdrawn worth $26,666.67

Total funds in Dex = $140,000 / 105,000 Drops (dollar cost average = $1.33)

Addition #1

User adds 15,000 Drops to Dex

  • First 90-day timer is filled, 10,000 Drops worth $13,333.33 added to Dex
  • Second 90-day timer is partially filled
    • 5,000 / 20,000 Drops = 25%
    • 25% of $26,666.67 = $6,666.67
    • 5,000 Drops worth $6,666.67 added to Dex
  • Total added to Dex = 15,000 Drops worth $20,000 (10,000 @ $13,333.33 + 5,000 @ $6,666.67)

Total funds in Dex = $160,000 / 120,000 Drops (dollar cost average = $1.33)

Withdrawal #3

User withdraws 100,000 Drops

  • 100,000 / 120,000 Drops = 83.333%
  • 83.333% of $160,000 = $133,333.33

90-Day Timer #3

100,000 Drops withdrawn worth $133,333.33

Total funds in Dex = $26,666.67 / 20,000 Drops (dollar cost average = $1.33)

Addition #2

User adds 200,000 Drops to Dex and the current price of Drops is $2

  • Remaining Drops from second 90-day timer is filled (15,000 Drops)
    • 15,000 / 20,000 = 75%
    • 75% of $26,666.67 = $20,000
    • 15,000 Drops worth $20,000 added to Dex
  • Third 90-day timer is filled: 100,000 Drops worth $133,333.33 added to Dex
  • Remaining to add to Dex = 200,000 – 15,000 – 100,000 = 85,000
    • 85,000 Drops @ $2 = $170,000
  • Total added to Dex = 200,000 Drops worth $323,333.33 (15,000 @ $20,000 + 100,000 @ $133.333.33 + 85,000 @ $170,000)

Total funds in Dex = $350,000 / 220,000 Drops (dollar cost average = $1.59)

 

If you have any suggestions to make this article more clear, suggestions would be greatly appreciated in either a support ticket in the Dropil portal or emailed to [email protected] Thank you!

Was this article helpful?

Related Articles