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.
The system automatically activates when the collateral reaches a -25% drop over the total RVs in the PAI.
The Collateral Protection Module (MPC) is initiated, a safeguard protocol designed to stabilize and recover value.
Upon activation of the MPC, a fraction of the rewards is automatically allocated to strengthen the collateral's value.
Percentage of total PAI rewards used by the MPC
The rewards generated are directly reinvested into the PAI
Rewards generated with the MPC are automatically reinvested until its deactivation, generating compound returns.
All commissions from the sale of participations in any product are fully allocated to the collateral during the activation of the MPC.
The company makes strategic capital injections to accelerate collateral recovery.
Dedicated recovery management
Operational Pool
Automatic MPC Activation
25% of rewards are allocated for reinvestment
Multiple mechanisms operating
Capital Reintegration
Once the collateral recovers to -15%, the system automatically deactivates the MPC.
This threshold ensures a sufficient safety zone before normalizing operations.
Initial critical threshold
Recovery completed
Upon MPC deactivation, the strategy is dismantled in an orderly and controlled manner.
The MPC completes its protection cycle and proceeds with its structured disassembling.
100% of the rewards are redistributed back into payments.
Automated system that ensures an immediate response to market downturns.
Multiple capital sources converge to efficiently and sustainably restore collateral.
Transparent mechanism that reinforces the security and stability of the PAI ecosystem in any adverse scenario.
An advanced strategy designed to protect and recover collateral under adverse market conditions, ensuring the stability of the PAI ecosystem.