Token Distribution

1. Token Issuance

The HSF will be issued when an investment product is sold. If a $1 million product is registered on the platform and $1 million is deposited in the pool through USDT, an HSF of equal value will be provided as collateral for participants who deposit USDT.

Example) If you deposit $100,000 USDT for a $1 million product, 10% of the product's rights will be recorded in the contract and $100,000 HSF will be provided simultaneously.

The $1 million USDT deposited will immediately be paid to the product owner who registered his contract, and the rights to the contract will be transferred to the platform.

Participants who deposited USDT will acquire the contract and HSF, and they can cash their HSF at any time by trading on the market.

For example, if a user who has $100,000 ownership and HSF sells 50% of his total HSF to the market, the right to the product will remain only $50,000, the amount of HSF will be 50% of the original amount.

If a user holds his HSF as collateral until the expiration date of the original contract fund, he will earn interest in proportion to the amount of USDT deposited in the contract fund, and if the collateral is disposed of halfway, the remaining rights will be paid.

For example, suppose $1 million product has generated 20% profit and is liquidated at $1.2 million. If a user holds $0.1 million HSF at the end, all HSF will be collected by the foundation and the profit will be automatically paid in USDT (in this case, the user will receive $0.12 million USDT). If the user has disposed 50% of his HSF, he will receive $0.06 million USDT as the return.

All HSFs are issued only when fund products are sold, and Hillstone does not guarantee absolute safety or unconditional income. However, investors have the advantage of avoiding losses from huge price drop of our currency since HSF is pegged by actual fund products.

If the price of HSF rises, you can sell collaterals (HSF) to realize your profits, and if the price of HSF falls, you can continue to hold the HSF as collateral, the interest of fund product will protect you from the price drop of HSF.

Most importantly, the fact that HSF issuance must be carried out in conjunction with fund products can theoretically protect HSF price from falling significantly.

2. Token Demand

The HSF needs to be deposited to Staking Pool inside of Hillstone DAO to join the Hillstone DAO. Stakers can indirectly participate in the investment and get the reward only by staking. The reward is distributed along with the Staking pool share percentage. If you joined Staking at the amount of 10K in total 100K, this is 10% of the share percentage so you receive 10% of the total reward when the new Staking reward happens. Therefore, HSF holders can receive the reward without directly participating in investment via HSF Staking. Also, they can receive more rewards by securing more shares by additional HSF staking to Staking Pool. Therefore, Holders become to join additional Staking to HSF keeping the low risk, and this can reserve the HSF's value increase.

The Hillstone DAO member doing product operations should maintain the top 100 share percentage in the Staking Pool. Stakers who wants to operate the product in Hillstone DAO can obtain investment participants and investment money. Therefore, they should keep the share percentage rank in the top 100 by continuous staking and this gives a positive effect on HSF's value increase.