NUTS Platform Docs
2.0.0
2.0.0
  • Introduction
  • Opportunity
    • Multiple Classes of Financial Instruments
      • Financial Instruments Supported
    • Reducing Barriers to Entry
    • Customization and Compatibility
  • Architecture Overview
    • Design Principles
    • Domain Model
    • Access Control
  • Implementation
    • Escrow
      • Common Functionalities
      • Instrument Escrow
      • Issuance Escrow
      • Deposit Escrow
    • Instrument Manager
    • Instrument Registry
    • Common Oracles
      • Timer Oracle
      • Price Oracle
    • Protobuf Solidity Generator
    • Interactions
      • Interaction - Instrument Management
      • Interaction - Issuance Creation
      • Interaction - Issuance Engagement
      • Interaction - Token Deposit
  • Platform Upgrade
  • API Reference
  • FSP Guidebook
    • Principles
    • Use Cases
      • Loan Instrument
      • Lockup Instrument
      • PIPE Instrument
      • ESOP Instrument
  • Appendix
    • FAQ
    • Glossary
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On this page
  • Use Case Description
  • Actors
  • Precondition
  • Process Flow
  • Main Process Flow
  • Alternative Process Flow
  • Issuance States

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  1. FSP Guidebook
  2. Use Cases

Lockup Instrument

A financial instrument that allows Foundations to ensure token price stability and prevents investor sell off.

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Last updated 5 years ago

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Use Case Description

The system allows makers to create new lockup issuance, and allows takers to engage the existing lockup issuance.

Actors

  • Maker, who is the asset seller of the lockup. Usually the Foundation who wants to stabilize the market price of the token asset;

  • Taker, who is the asset purchaser of the lockup. Usually the token investor;

  • Timer Oracle, who is an external timer service provider that provides timing triggers to NUTS technology platform.

Precondition

  • Financial Service Providers have created the lockup instruments using the NUTS protocol;

Process Flow

The process flow of the Lockup contract is shown below.

Main Process Flow

  • Maker creates new issuance of lockup instrument;

  • Maker deposits the bonus token to the lockup issuance;

  • Taker engages the lockup issuance;

  • Taker deposits the principal token to the lockup issuance;

  • When the lockup ends, the taker can retrieve both the principals and the bonus token.

Alternative Process Flow

  • If maker does not deposit the bonus token in time, the issuance becomes unfunded;

  • If taker does not deposit the principal token in time, the issuance becomes delinquent;

  • If there is no engagement in time, the issuance completes with no engagement.

Issuance States

Below are the possible states of a lockup contract.

  • Initiated: The lockup issuance is created;

  • Engageable: The maker deposits the bonus token;

  • Active: The taker engages the lockup issuance;

  • Complete Engaged: The lockup period ends with principal token deposited in time;

  • Unfunded: The maker fails to deposit the bonus token in time;

  • Complete not Engaged: No taker engages in time;

  • Delinquent: The taker fails to deposit principal token in time.