# #Cargohold Breakdown

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Published 2022-11-07

This page will explain the entire breakdown of how our Cargohold mechanics work and what benefits you receive when you create a Cargohold.

## #How to create a Cargohold

In order to create a Cargohold, you must have at least 20 $CARGO tokens. Cargohold creation will mint an NFT, which is a representation of your Cargohold. The daily rewards for having a Cargohold will be based on our Active Reward Mechanism (ARM), which will automatically determine the scale of rewards per Cargohold. The team has designed ARM to dynamically recalibrate the rewards system thereby insuring sustainable long-term rewards versus using a static reward system leveraged by other projects. Cargohold Holders can claim daily$CARGO rewards via our dApp.

How To Purchase A Cargohold With $CARGO 1. Buy$CRO
2. Swap $CRO for$CARGO
3. Connect your wallet to our dApp
4. Hit the "Purchase Cargohold" button to open the details screen.
5. Enter the base Cargohold name that you would like and how many Cargoholds to create.

## #The Cargohold creation fee, how is that distributed?

Cargohold Mint breakdown is as follows:

• 15.5 $CARGO will be sent to the Rewards Vault. The size of the Rewards Vault is one of the variables used by ARM to calculate rewards. • 3$CARGO will be split 50/50 to form $CARGO/$CROS LP.
• 1.5 $CARGO will be sent in CRO the Universal Sustainable Growth Fund. Mint Breakdown in Table Form: Destination CARGO Token Count CARGO Token % used to Mint Rewards Vault 15.5 77.5% Liquidity Pool 3 15% USGF 1.5 7.5% When creating a Cargohold, the 20 tokens are distributed with 15.5$CARGO sent to the Rewards Pool, 3 $CARGO sent to the Liquidity Pool, and 1.5$CARGO (equivalents in CRO) sent to the Universal Sustainable Growth Fund. Half of the $CRO and$CARGO sent to the Liquidity Pool from new cargohold creation will be re-allocated as follows: $CARGO will be transferred into the Rewards Vault.$CRO will be deployed to our Universal Sustainable Growth Fund that will be used for cross-chain investing that allows for the company to grow and benefit Cargohold holders.

The team recognizes that new, emerging technologies are being pioneered in the Cryptocurrency space everyday creating new demand and new opportunities for allocation of the Universal Sustainable Growth Fund. We will continuously monitor new opportunities as we progress.

## #Active Reward Mechanism - How does this work?

Our Active Reward Mechanism is our unique approach for solving scalability issues that can be seen in the DeFi space.

'ARM' will automatically determine the rewards per Cargohold every day utilizing factors such as reward pool size, new cargohold creation, and total cargoholds created. In addition, our team has implemented functions to reassess the reward pool at any time to ensure the sustainability of the project.

P= \text{Amount of \$CARGO rewards in the Rewards Vault} N= \text{Number of Total Active Cargoholds} X= \text{Constant used to scale R, X will initially be 1} R= \text{Payout per Cargohold} K = \text{Calculated once per day to determine R} Z= \text{Average days in month (30)} Base Formula: K = 3 \dfrac{\dfrac{P}{N}-(Z - 1)}{Z^3 - 1} Rewards Formula: R= \begin{cases} 1 & \quad \text{when$K \geq 0$}\\ K X^2 + 1 & \quad \text{when$\dfrac{-1}{Z^2} \leq K \leq 0$}\\ \dfrac{P}{ZN} & \quad \text{when$K \leq \dfrac{-1}{Z^2}$} \end{cases} Recurring evaluations of this formula will occur to ensure that we're being fair to all investors, not just catering toward the early investors of the project. ## #Maximum Cargohold NFT Cap There is a maximum Cargohold NFT collection cap of 150,000. That makes us the largest NFT collection on the Cronos Chain. Our gamification features such as Hijacking allow for our collection to be deflationary. ## #Claiming You can claim your$CARGO tokens directly to your wallet using our dApp every 5 days (120 hours) for the minimum claim fee of 10%. If you choose to claim your tokens more often you will have the ability to claim every 24 hours for a claim fee of 20%. This fee reduces 2% every 24 hours the tokens are left as unclaimed rewards until the minimum of 10% is reached.

Hours Since Last Claim Base Claim Tax %
0 to 24 20%
24 to 48 18%
48 to 72 16%
72 to 96 14%
96 to 120 12%
120+ 10%

70% of the proceeds from the claim fees will go back into the Rewards Vault and 30% will go toward the LP.

## #Compounding

You will have an option at a wallet level to enable automatic compounding, or automatic purchasing of new Cargoholds. You can enable this feature in the Cargohold Dashboard at no cost (except for gas.) Once enabled the feature must remain active for at least 10 days or 240 hours else the wallet will be charged a scaled opt out fee. 100% of the opt out fee is allocated to the Universal Sustainable Growth Fund. Early Termination Fee Structure:

• Days 1-5 is 200 $CRO • Day 6 is 160$CRO
• Day 7 is 120 $CRO • Day 8 is 80$CRO
• Day 9 is 40 $CRO • Day 10 and beyond is free with exception of gas. The claiming process for compounding wallets is the same but with a few differences: • Any rewards claimed are exempt from tax fees • Instead of$CARGO going to your wallet, it is sent to the autocompounding system.

The auto compounding system is a simple process, consisting of 3 steps.

• First it sums up any previous $CARGO carried over from previous claims, and your new claim amount. • It then calculates how many NFTs you can buy with your new total • It deducts the total cost of these NFTs from the new total • Any remaining$CARGO left over will be carried over into the next claim

Pending NFTs:

• These represent a 100% discount on the individual price of an NFT mint (20 $CARGO). • These discounts are automatically applied first in the purchasing process • You can use minting using the normal process by clicking 'Purchase New Cargohold' on our dApp. Compounding Mint breakdown is as follows: For Cargoholds created while compounding: • 17$CARGO will be sent to the Rewards Vault. The size of the Rewards Vault is one of the variables used by ARM to calculate rewards.
• 2 $CARGO will be split 50/50 to form$CARGO/$CROS LP. • 1$CARGO will be sent in CRO the Universal Sustainable Growth Fund.

Compounding Mint Breakdown in Table Form

Destination CARGO Token Count CARGO Token % used to Mint
Rewards Vault 17 85%
Liquidity Pool 2 10%
USGF 1 5%

Compounding effectively locks the Cargoholds across the wallet from most administrative features which will be discussed in more detail in subsequent sections. Compounding will automatically be disabled when the wallet has reached the hard cap of 100 Cargoholds.

## #Abilities

Currently, there are 3 abilities that you will be able to activate on your Cargohold.

For an additional 50 $CRO per Cargohold, you can fractionalize your Cargohold to up to (5) different wallet addresses plus your own wallet address. Using the CroSwap NFT Marketplace, you can lease equal fractions of your Cargohold to other members of the community. All proceeds from this fee will be added into the Universal Sustainable Growth Fund. Lease periods range from a minimum of 5 days to a maximum of 180 days with increments of 5 days to ensure the lessee receives all rewards applicable for the lease term. Split Cargohold Limitations: • The landlord/renter(s) will be able to Claim their rewards separately with all applicable taxes. • Leased Cargoholds are not eligible for Trade. • Leased Cargoholds are not eligible for Hijack. • Leased Cargoholds are counted against the landlord’s Cargohold cap. • A prospective renter will only be considered eligible for purchasing a lease if the renter’s wallet is under the 100-Cargohold cap. • A prospective landlord cannot establish a term that exceeds that their monthly maintenance window. ### #Trading Once your Cargohold is unlocked you will be able to trade your Cargohold(s) to other members of the community, at a price that YOU determine, in$CRO using our Marketplace. You will be able to un-list your Cargohold(s) or change your selling price.

There will be a 10% fee on trading your Cargohold. All proceeds from this fee will be split: 50% into the Universal Sustainable Growth Fund and 50% into the LP.