According the current version of the Deposit and Redemption Agreement, the valid states of the Asset Ledger are:
- Transition – Deposits and donations are accepted during Transition. However, no redemptions are allowed while the Ledger is in Transition State. Transition State is adopted during the initial period (pre-launch) while the CuBitDAO™ is being funded. When Ledger values hit predefined pre-launch targets the Ledger State will be changed by the Administrator to one of the other Ledger States, as appropriate. After the pre-launch, Transition can also be invoked by a vote of the Members for some extraordinary reason such as an existential threat to the CuBitDAO™.
- LAOut – Liquid Assets Out of Target (LAOut) happens when the value of liquid assets as a percentage of all the assets in the Ledger falls below the minimum threshold allowed under the contract between the Members and the Administrator. While LAOut prevails, all redemptions are considered Real Estate Redemptions and fall within the restrictions of that redemption policy.
- REOut – Real Estate Assets Out of Target (REOut) occurs when the value of real estate assets as a percentage of all the assets in the Ledger falls below the minimum threshold allowed under the contract between the Members and the Administrator. On-Demand Redemptions and Real Estate Redemptions are available when the Ledger State is REOut.
- Stable – Stable State occurs when real estate assets and liquid assets are within the thresholds established under the contract between the Members and the Administrator. On-Demand Redemptions and Real Estate Redemptions are available when the Ledger State is Stable.
Note in the text above the effects of the various Ledger State values on redemptions and deposits.
Although the design of CuBit™ incorporates inherent protections against volatility and Universal Real Estate Wealth Protection Solutions, LLCTM (UREWPSTM, the Company) is committed to support the asset-based valuation of CuBit™, as with any currency there is nothing to prevent speculators from taking unforeseen actions which might cause the price of CuBit™ to vary without reference to the underlying value proposition. The Company cannot prevent and is not responsible for the actions or results of such speculative behaviors.
