Liquidity Pools
1. What is Secondary market Pool?
Secondary market pool is used as the liquidity provider if somebody want to sell their property instantly and when a new Buyer on the marketplace wants to buy a property token, 0xEquity Marketplace automatically take the property from Secondary market pool and sell it to the user and transfer the purchase amount to the Secondary market charging no fee as the platform for this operation.
2. What if the Price of Property drop if the property own by Secondary market Pool?
In case of loss to the liquidity pool. Protocol will distribute the loss to the all users.
In case of profit in future transactions, the protocol automatically settle previous loss amount and then distribute the remaining profit to the liquidity providers.
e.g If the user sold the property when the price of the Property token was 600 USD. Due to market situation the price of Property fell to 500 USD then Liquidity providers will get a distributed loss of 100 USD.
If another property token held by Secondary market pool gets 200 USD as revenue. Then the protocol automatically distribute 200 USD revenue over the pool.
3. Does Secondary market pool have Lock Period?
No there is no lock period but in order to receive the full reward amount you have to keep the liquidity for at least 14 days since your previous deposit. This is to protect the existing liquidity providers and stop getting an unfair portion of the revenue earned.
4. Does Secondary market pool legally own the property?
The Secondary market pool will not legally own the property. It is only providing liquidity to the instant buyer/sellers.
5. How Secondary market pool liquidity provider will get the Reward?
You may navigate to the Reward page to claim the Secondary market pool Reward.
6. How i can withdraw money from Secondary market pool?
To withdraw money from Secondary market pool. You need to withdraw it from the Pool .
7. How much i can invest in Secondary market pool?
There is no limit and you may invest as much as you want in Secondary market pool.
8. What is reward for providing the liquidity to Secondary market Pool?
Secondary market pool liquidity providers will earn multiple rewards.
They will get 3.75% instant sell commission.
They also receive the Property rental and capital gain for the time the property is held in the pool.
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