DUKASCOIN EQUITY&LEVERAGE BONUS

The core principles of DUKASCOIN EQUITY&LEVERAGE BONUSES

Dukascoin holders who will use DUK+ tokens to deposit and withdraw funds from a special type of trading accounts with fiat base currency (EUR) have a unique opportunity to utilize extra equity and leverage bonuses imbedded directly in the heart of the Dukascoin reward programs.

First of all, rewards envisaged for Coin and Fiat reward programs are accrued in advance. According to the trading account funding by Dukascoins conditions our clients have the opportunity to transfer all available DUK+ including rewards accrued to the special trading account. It means that by default clients can get the Equity Bonus up to 100% in case of deposit of 10000 and more Dukascoins according Coin Reward program schedule.

While those trading accounts remain completely standard in terms of trading condition, thanking to special rate to all exchanges of DUK+ to EUR and EUR to DUK+ called Trading Account Funding Conversion Rate (TAFCR, described below) traders can substantially increase their effective leverage namely up to 80%.

Dukascopy Bank offers to clients the chance to use Equity and Leverage Bonuses at the same time. Three use cases below will describe details of how to bring Dukascoin Equity and Leverage Bonuses to life.

What does it offer to Dukascopy Bank's clients?

Dukascoin holders have the opportunity gain extra income and take advantages of being DUK+ owners by applying for the following exclusive offers available for Dukascopy Bank clients:

  1. Dukascopy Bank SA offers the possibility to use DUK+ tokens to deposit and withdraw funds from a special type of trading accounts with fiat base currency (EUR). An extremely favorable DUK+/EUR special exchange rate is applied in these operations.
  2. Coin reward for 1-year fixed term deposits in Dukascoins. The Coin Deposit reward rate depends on size of the deposit and can reach up to 100% (more info). More importantly, the placed deposit can be used as margin for a trading account.
  3. EUR reward for 1-year fixed term deposits in Dukascoins. Within the exclusive promotional offer in force during the first months after the launch of the Dukascoin project the EUR Deposit reward rate is expected to be EUR 0.5 for each Dukascoin placed (more info). The placed deposit can be used as margin for a trading account.
  4. "Fat Catz" — special EUR reward program for the largest DUK+ coin holders. Reward is formed from the 1% commission Dukascopy Bank collects from each transaction where Dukascoins are exchanged to EUR at the internal marketplace. Once a month all this commission income is distributed proportionately between Fat Catz reward program participants (more info).

Account funding in Dukascoins

The launch of the Dukascoin project originated a unique offer for Dukascopy existing trading clients and to holders of Dukascoins on MCA accounts — funding of trading accounts with DUK+ coins.

Trading accounts remain completely standard in terms of trading condition and have EUR as base currency. What changes is the funding facility that comes with a set of advantages brought to the client:

  • Stable and predictable DUK+/EUR exchange rate applied to funding and withdrawal operations (more info).
  • Leverage of approximately 1.8 on invested funds due to multiplication factor embedded in the DUK+/EUR conversion rate and up to 2 times more due to the reward earned on the Dukascoin deposit (Use case 1 below).
  • Opportunity to combine active trading with simultaneous passive income earning on Dukascoin reward deposits using the same amount of funds (Use case 2 below).

USE CASE 1 — Funding of a trading account with DUK+

  1. You have 1'000 EUR and want to open a trading account with Dukascopy Bank. You learn about the attractive conditions offered on Dukascoin-fundable trading accounts and decide to go for that option.
  2. You buy Dukascoins on the internal marketplace at the average rate of 0.75 EUR for 1 DUK+.
    1'000 EUR / 0.75 => You purchased 1'333.33 Dukascoins (DUK+)
  3. You open a Dukascoin-fundable trading account from your MCA accounts's client area and transfer your 1'333.33 DUK+ to this trading account.

    The special conversion rate applied for this operation is 0.8 (historical weighted DUK+ price) * 1.8 (multiplicator applied to account funding conversions) => 1.44 EUR for 1 Dukascoin.

    1'333.33 Dukascoins X 1.44 = 1'920 EUR
  4. Result: You have 1'920 EUR of equity on your trading account while you had only 1'000 EUR of initial funds. You received an additional leverage of almost 2X due to choosing the option to fund your trading through Dukascoins.

USE CASE 2 — Combining a Dukascoin deposit with a trading account fundable in DUK+

  1. You have accumulated 10'000 Dukascoins on your MCA account and decide to place those on a Coin Reward Deposit for 1 year.
  2. According to the current conditions, the reward rate for a deposit of 10'000 coins is 100%. The reward is payable at deposit initiation, so you have 10'000 × 2 = 20'000 Dukascoins on the deposit account right away.
  3. You want to make an additional use of the deposit amount and decide to use these funds as margin for a Dukascoin-fundable trading account. You open the trading account from your MCA account's client area and transfer your 20'000 DUK+ to this trading account.

    The special conversion rate applied for this operation is 0.8 (historical weighted DUK+ price) × 1.8 (multiplicator applied to account funding conversions) => 1.44 EUR for 1 Dukascoin.

    20'000 Dukascoins X 1.44 = 28'800 EUR
  4. Result: You started with 10'000 Dukascoins (approximately 7'500 EUR, assuming the current exchange rate on the internal marketplace is 0.75). You received a 100% reward rate on the deposit (i.e. 10'000 DUK+ more) and opened a trading account worth 28'800 EUR using the same funds as margin. You received an additional leverage of almost 4X due to choosing the option to combine a Dukascoin deposit with a trading account funding through Dukascoins.

USE CASE 3 — Combining a Dukascoin EUR reward deposit with a trading account fundable in DUK+

  1. You have accumulated 1'000 Dukascoins on your MCA account and decide to place those on a EUR Reward Deposit for 1 year.
  2. According to the current conditions, the reward rate for a deposit of 1'000 coins is 0.5 EUR per 1 Dukascoin. The reward is payable at deposit initiation, so you have 1'000 Dukascoins on the deposit account right away and 500 EUR reward blocked until deposit expiration.
  3. You want to make an additional use of the deposit amount and decide to use these funds as margin for a Dukascoin-fundable trading account. You open the trading account from your MCA account's client area and transfer your 1'000 DUK+ to this trading account.

    The special conversion rate applied for this operation is 0.8 (historical weighted DUK+ price) * 1.8 (multiplicator applied to account funding conversions) => 1.44 EUR for 1 Dukascoin.

    1'000 Dukascoins X 1.71 = 1'710 EUR
  4. Result: You started with 1'000 Dukascoins (approximately 890 EUR, assuming the current exchange rate on the internal marketplace is 0.89). You received a 500 EUR reward on the deposit and opened a trading account worth 1'710 EUR using the same funds as margin. Your received risk free trading limit of 500 EUR until breakeven of your investment and additional leverage of almost 1.71 due to choosing the option to combine a Dukascoin EUR reward deposit with a trading account funding through Dukascoins.

General Conditions & Limitations

To be able to use Dukascoins (DUK+) to deposit and withdraw funds from a trading account the client shall:

  • Have an MCA account.
  • Open a Dukascoin-fundable trading account that only allows deposits/withdrawals in DUK+.

The service is offered under the following conditions:

  • Opening of a Dukascoins-fundable account is available to clients that have accumulated at least 100 DUK+ on their MCA account.
  • Deposits and withdrawals are made in DUK+ only.
  • Deposit is possible only in form of transfer from the MCA account of the client.
  • Withdrawals are possible only in form of transfer to the MCA account of the client.
  • Only one Dukascoin-fundable trading sub-account can be opened by one client.
  • The base currency of Dukascoin-fundable accounts is the EUR.
  • Dukascoins transfers are always converted by Dukascopy Bank into EUR at the current TAFCR rate. The proceeds of the DUK+/EUR conversion are credited in EUR to the Dukascoin-fundable account of the client.
  • In case of withdrawal, the Bank debits an amount of EUR from the Dukascoin-fundable account of the client, converts this amount into DUK+ at a current TAFCR rate and transfers the amount in Dukascoins to the MCA account of the client.
  • Dukascoin deposits may not be processed instantly. The client must accept the risk of loss due to the fluctuations of the DUK+/EUR exchange rate (TAFCR) between the moment he transfers DUK+ to the trading account and the moment when they are converted into EUR by Dukascopy. Likewise, a lag will exist between the moment the client requests a transfer in DUK+ to the MCA account and when the DUK+ will be acquired by Dukascopy to be sent to the client.
  • Transfers of DUK+ between the MCA account and the trading account of the client are processed only during business days (in the Canton of Geneva, Switzerland).

Creation of a Dukascoin-fundable trading account

At the present moment clients may request opening a Dukascoin-fundable trading account by contacting their account manager directly or by sending an inquiry to [email protected]

  1. You will receive a link to sign the necessary account opening documents.
  2. Upon successful processing of the inquiry, you will receive an email with the login and temporary password of the new trading account.

Funding of the account

Log in to the Live Member area of your Dukascoin-fundable trading account, proceed to “My Account” section and find the “Deposit in Dukascoins” form:

The amount of DUK+ coins available in your MCA account will be shown in the form. Indicate the amount of Dukascoins you wish to transfer (or tick the “Full transfer” checkbox) and confirm the operation by clicking on the “Submit” button:

Dukascopy will convert the requested DUK+ deposit amount to the base currency of the account (EUR) will be exchanged to EUR using the current TAFCR rate before being creditinged to the trading account.

Withdrawing funds from the account

Log in to the Member area of your Dukascoin-fundable trading account,. proceed to “My Account” section and find the “Withdrawal in Dukascoins” form:

Indicate the desired withdrawal amount in EUR and confirm the operation:

Dukascopy will convert the requested EUR withdrawal amount to DUK+ using the current TAFCR rate before crediting the MCA account.

Trading account funding conversion rate

Dukascopy Bank applies a special rate to all exchanges of DUK+ to EUR and EUR to DUK+ when these operations are executed while depositing or withdrawing funds from a trading account — Trading Account Funding Conversion Rate (TAFCR).

TAFCR formula

[Average price of DUK+ public trades executed on the Dukascopy internal marketplace during the entire lifespan of the Dukascoin weighted by traded volume and multiplied by the factor of 1.8]

TAFCR = 1.8 x Avg(DUK+)*

* Avg(DUK+) − the average price of DUK+ public trades executed on the Dukascopy internal marketplace during the entire lifespan of the Dukascoin weighted by traded volume.

Calculation principles

  1. Calculation base period is the entire lifespan of Dukascoin existence.
  2. Every Dukascoin public trade on the internal marketplace triggers recalculation of the TAFCR rate.
  3. Private trades are not taken in TAFCR calculation.
  4. Weighting of the trades in the TAFCR calculation is done on the basis of the volume traded in the particular operation to the total volume of Dukascoins publicly traded during the lifespan of the Dukascoin. Volume of the trades is taken in DUK+.
  5. Under all conditions the TAFCR cannot be lower than 1 DUK+/EUR and higher than 10 DUK+/EUR.

Historical development of the TAFCR rate
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