Extended Insurance Protocol (EIP) is a next-level specialized insurance protocol that constantly evaluates the performance of the project in the TGE and keeps evaluating the price of the token during the entire vesting schedule, and is activated when the price of the token remains below the IDO price 5 days in a row.
The main purpose of this protocol is to create a highly-protected environment for both investors and project owners by adding new topics to our current insurance protocol.
Let’s take a closer look!
You can find the projects with Extended Insurance Protocol will have an EIP sticker beside their names on our announcements and our website. Also, their insurance content can be seen in our “IDO PROJECTS” tab.
This recently-developed protocol will function with two different variables.
Let's take a project IDO and listing that has 25% at the TGE, 25% monthly vesting over 3 months, and 1 USD public sale price as an indication:
In the first scenario, if the token price can hold the minimum value of 4X, the Extended Insurance Protocol ends 24 hours after Listing.
Let’s take the same example and apply it for the second scenario.
If the project cannot meet the demanded X4 for 24 hours after TGE, the EIP protocol starts functioning and evaluating. If the token price stays lower than the IDO price for 5 consecutive days during the vesting period, BinStarter will return the remaining vested portion.
The Protocol works as below.
25% - TGE - August 7th, 2022
If the token price remains below the IDO price for 5 consecutive days between August 7th and September 6th, 2022, BinStarter will return %75 of the investment to investors.
25% - First Vesting - September 7th, 2022
If the token price remains below the IDO price for 5 consecutive days between September 7th and October 6th, 2022, BinStarter will return %50 of the investment to investors.
25% - Second Vesting - October 7th, 2022
If the token price remains below the IDO price for 5 consecutive days between October 7th and November 6th, 2022, BinStarter will return %25 of the investment to investors.
25% - Third Vesting - November 7th, 2022
When the last vesting distribution is completed, the EIP ends.
Frequently Asked Questions
1. What will happen if the token price remains below the IDO price for 4 consecutive days then moves upper than the IDO price for the last day and again goes below on the following day?
If the price remains higher than the IDO price for 24 Hours, the EIP will not be activated and the countdown will restart.
2. Let’s say I’m going to be collecting 100 tokens according to this example. I took 25 tokens in TGE and 25 tokens in the first vesting but I did not claim it, and in the next vesting period the EIP is activated, is it possible to get all my funds refunded?
In this scenario, we will get %50 since holding or selling the tokens was the investor’s choice.
3. Is this Protocol applicable to all the projects?
Previously signed agreement projects are not involved with this protocol. You can see the projects that are involved with the EIP sticker in the “IDO PROJECTS” section.
4. Who can Benefit from the EIP?
All $BSR holders have the right to attend the IDOs with an EIP sticker
BinStarter is a decentralized mining-style approval mechanism insurance protocol that is designed to examine projects according to certain criteria for 30 days and to protect liquidity providers against possible financial damages or any negativities.
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