SmartFi coin (SMTF) entitles the holder to certain rewards on the SmartPortal and SmartDex. SMTF will be traded on the SmartPortal with no trading fees. Customers qualify for SMTF rewards based on their loyalty, known as SmartLevel.
Possession of SmartFi Token, known by the trading name SMTF entitles the holder of the token to receive certain fixed rewards and discounts on our SmartPortal and SmartDex. This token has been issued on the Binance Smart Chain (BSC) which ensures its stability and reliability.
As a customer, you can purchase and deposit SMTF in your SmartWallet, through which you will be eligible to acquire rewards based on your SmartLevel. Your SmartLevel is determined by the ratio of your Notional USD value (SFUSD) of SMTF holdings divided by the Notional USD value (SFUSD) of all customer SmartFi product balances.
There are 4 loyalty tiers (Base Level – Smart, Level 1 – Bright, Level 2 – Brilliant and Level 3 – Genius) that a customer can attain, with each level determining whether the customer receives additional interest on their deposits, discounts on their loan interest rate or refunds on their trading fees incurred on the SmartExchange.
SmartFi customers can earn interest on their crypto balances such as Bitcoin, Ethereum or other Stablecoins which are deposited onto our platform. The interest rate earned is based on the SmartLevels mentioned earlier. In case the customer decides to opt to receive interest in the form of SMTF coins instead of the deposited coin, they can earn additional interest as indicated in the table above. Customers even receive interest on the SMTF balance in their account, which will be paid out in SMTF itself.
The interest calculation for this is done using the formula for the SMTF Ratio that determines the reward level for the customer, which is as follows:
SMTF Ratio = [Sum of SMTF Notional Value / Sum of all Digital Coins Notional Value used across all SmartFi offerings] * 100
The SmartFi offerings include current SmartLoans and SmartInterest accounts active on a customer’s profile.
For example, if a customer has a deposit of $1,000 worth of SMTF coins in their SmartInterest account and a deposit of $10,000 BTC, $5,000 ETH and $1,000 USD, the SMTF ratio formula would read 1,000/16,000 = 6.25%, which means that the customer is on Level 2 (Bright).
Thus, the customer would receive the rewards proportionate to the rates mentioned in that particular tier. If the customer wishes to earn an additional 2% interest, they can opt to receive the overall interest in SMTF tokens.
To give you an idea of the difference between receiving interest in BTC and SMTF, let us take the example of a Level 4 – Genius customer.
For a deposit of 1 BTC, a 5% APY in BTC would mean:
1 BTC * (0.05/365) * number of days deposited, which equates to 0.00013699 daily.
For a deposit of 1 BTC, a 7% APY in SMTF would mean:
1 BTC * (0.07/365) * number of days deposited, which equates to 0.00019178 daily, divided by the current API price of SMTF token.
The interest accrued daily is collated and paid out weekly.
SmartFi customers can post their cryptocurrency collaterals to receive fixed loans in the form of USD. In case the customer deposits SMTF coins into their SmartInterest account, they will receive a reward level that can make them eligible for a discounted rate on their loans.
The calculation for the SmartLoan is based on the following formula for the SMTF ratio:
SMTF Ratio = Total Notional Value of SMTF deposited into SmartInterest account / Sum of Total Digital Assets deposited into SmartInterest account and Total Collateral posted for Cryptocurrency Loans
For example, for a customer with a SmartInterest account having BTC worth $20,000, a loan collateral of BTC worth $100,000, and securing a loan amount of $70,000:
If the customer has $12,000 worth of SMTF coins, his SMTF ratio would be $12,000/$120000, which would come up to 10%, meaning he would receive rewards under the Level 2 – Bright tier. This means that there would be a 10% discount on the loan interest rate.
So, the customer would pay 10.8% APY instead of 12% APY as long as the SMTF ratio lies between 5-15%. If the ratio goes below 5%, the customer faces a level downgrade and if the ratio goes above 15%, they obtain a level upgrade, and the rewards/discount on loans would change accordingly.
Based on these levels, the associated rate is automatically calculated for their balance during the period they are on that level.
If a customer holds 1% of their monthly trading volume in the form of SMTF tokens, then they are eligible to obtain a refund equal to 50% of their trading fees. This refund will be provided in the form of SMTF tokens at the end of the month.
Here are a couple of examples of this simple calculation:
Scenario 1: If a customer has a trading volume of $10,000 USD, with an SMTF balance greater than or equal to 1% (which equates to $100 in this case), the customer is eligible for a refund of $25 out of the $50 paid as trading fees during the course of the month.
Scenario 2: In a span of 30 days if the SMTF balance of the customer for Days 1-15 is 0, and $150 for Days 15-30, and if the customer trades $10,000 worth of BTC on Day 25, on Day 30, the calculation would be as follows, with a Trading Volume of $10,000 and Average Balance for the Month of $75:
SMTF Ratio = Average Balance / Monthly Trading Volume * 100 = $75/$10,000 = 0.75%
As the percentage holding of SMTF token is less than the 1% of the monthly trading volume, there would be no refund for the trading fees.
Investing, Trading or Borrowing with SmartFi is extremely rewarding. All you need to do is hold a sizable chunk of your portfolio in the form of SMTF tokens and unlock the true potential of your SmartFi transactions.
If you haven’t registered for your SmartFi account already, sign up now and get started on your path to becoming a SmartFi Genius!