Collateral Protection Module (MPC)
An advanced strategy designed to protect and recover collateral under adverse market conditions, ensuring the stability of the PAI ecosystem.
The Collateral Challenge
Market Volatility
Tokenized assets are subject to market fluctuations that can impact the value of the collateral backing the stakes.
A significant drop requires automatic protection mechanisms to maintain the highest capital stability.
System Protection Activation
Critical Threshold
The system automatically activates when the collateral reaches a -25% drop over the total RVs in the PAI.
Protection Module
The Collateral Protection Module (MPC) is initiated, a safeguard protocol designed to stabilize and recover value.
Activation of the Collateral Protection Module (MPC)
Upon activation of the MPC, a fraction of the rewards is automatically allocated to strengthen the collateral's value.
25%
Rewards Redeployed
Percentage of total PAI rewards used by the MPC
100%
Automatic Reinvestment
The rewards generated are directly reinvested into the PAI
Active Recovery Mechanisms
01
Reinvestment of Rewards
Rewards generated with the MPC are automatically reinvested until its deactivation, generating compound returns.
02
Sales Commissions
All commissions from the sale of participations in any product are fully allocated to the collateral during the activation of the MPC.
03
Corporate Injections
The company makes strategic capital injections to accelerate collateral recovery.
Unified Collateral Architecture
MPC
Dedicated recovery management
Principal PAI
Operational Pool
Protection Process Flow
1
Drop to -25%
Automatic MPC Activation
2
Module Activation
25% of rewards are allocated for reinvestment
3
Active Recovery
Multiple mechanisms operating
4
Deactivation at -15%
Capital Reintegration
Deactivation Conditions
Recovery Threshold
Once the collateral recovers to -15%, the system automatically deactivates the MPC.
This threshold ensures a sufficient safety zone before normalizing operations.
-25%
MPC Activation
Initial critical threshold
-15%
MPC Deactivation
Recovery completed
Capital Reintegration
Upon MPC deactivation, the strategy is dismantled in an orderly and controlled manner.
MPC Closure
The MPC completes its protection cycle and proceeds with its structured disassembling.
Total Distribution
100% of the rewards are redistributed back into payments.
Key Benefits of the System
Automatic Protection
Automated system that ensures an immediate response to market downturns.
Accelerated Recovery
Multiple capital sources converge to efficiently and sustainably restore collateral.
Partner Trust
Transparent mechanism that reinforces the security and stability of the PAI ecosystem in any adverse scenario.