Documentation

This documentation is a guide to the fundamentals of Lothlor Token Fund.

Overview

Price

The price per token is calculated as follows:

LOT/ETH = 1 / ( a / b )

where:

a = ETH 7 day moving average

where:

b = LOT 7 day moving average

where:

LOT = (ETH + Tokens under 'Digital Assets' section + DAI) / Supply circulating supply of LOT tokens

All data used to determine closing figures are derived from CoinMarketCap.

Supply

Lothlor Token Fund has a total maximum supply of 21 Million tokens.

Token Distribution Table
#TOKENS
1Circulating Supply34,619.250
2Main Wallet Supply20,000,000 
3Trading Wallets Supply965,380.750  

Circulating Supply = 21,000,000 - ( Main Wallet Supply + Trading Wallets Supply)

Volume

Total trading volume is calculated as the total USD Rate at time of transaction, utilizing the Kyber Swap protocol.

Swap Tokens

Lothlor Token Fund makes use of the Kyber Widget v0.6.4, to swap tokens. If you would like to add this widget to your website you can use the following code:


<!-- Add this to the <head> tag -->
<link rel='stylesheet' href='https://widget.kyber.network/v0.6.4/widget.css'>

<!-- This is the 'Swap tokens' button, place it anywhere on your webpage --> <a href='https://widget.kyber.network/v0.6.4/?type=swap&mode=popup&callback=https%3A%2F%2Fkyberpay-sample.knstats.com%2Fcallback¶mForwarding=true&network=mainnet&commissionId=0x831A0249A4016ab6381aBE60A1DE17532298E0b4&theme=theme-emerald' class='kyber-widget-button theme-emerald theme-supported' name='KyberWidget - Powered by KyberNetwork' title='Pay with tokens' target='_blank'>Swap tokens</a>
<!-- Add this to the end of <body> tag --> <script async src='https://widget.kyber.network/v0.6.4/widget.js'></script>

Kyber Network

Kyber Network is connecting the fragmented tokenized world by enabling instant and seamless transactions between platforms, ecosystems and other use cases.

Buy Token

Lothlor Token is not avaliable on traditional exchanges due to price economics, as the token price is not influenced by supply and demand, but rather from the value of tokens held in the portfolio.

To obtain these tokens, individuals need to click on the "Buy Token" tab, which is a similar widget from Kyber Swap, but in this case converts Ethereum and any of the tokens on Kyber's supported token list into the token the fund requires, Wrapped Ethereum.

Buy Token

Individuals can connect their wallet to the Kyber Swap protocol using any of the following:

  • Metamask
    • MetaMask is a bridge that allows you to visit the distributed web of tomorrow in your browser today. It allows you to run Ethereum dApps right in your browser without running a full Ethereum node.
  • Trezor
    • Trezor is a cryptocurrency hardware wallet, offering secure cold storage plus the ability to spend with the convenience of a hot wallet. Trezor is a small, key-sized device which connects to your computer with a USB cable.
  • Ledger
    • Ledger hardware wallets are a series of multicurrency wallets that are used to store private keys for cryptocurrencies offline.
  • KeyStore
    • A Java KeyStore (JKS) is a repository of security certificates – either authorization certificates or public key certificates – plus corresponding private keys, used for instance in SSL encryption.
  • Private Key
    • A private key is a sophisticated form of cryptography that allows a user to access his or her cryptocurrency.

Wallet

Once we have received the Wrapped Ethereum, please allow between 12-24 hours to receive your tokens.

LOT tokens to be received = WETH received X ( 1 / Rate LOT/ETH at time of transaction)

Trading Rules

Watchlist

*Changed from Top 20 to Top 10 from 07 June 2019

The token fund's watchlist consists of:

  • The top 10 ERC-20 tokens by market capitalization, built on Ethereum
    • ERC-20 is a technical standard used for smart contracts on the Ethereum blockchain for implementing tokens.
    • Market Capitalization is one way to rank the relative size of a cryptocurrency. It's calculated by multiplying the Price by the Circulating Supply.
    • Circulating Supply is the best approximation of the number of coins that are circulating in the market and in the general public's hands. Total Supply is the total amount of coins in existence right now (minus any coins that have been verifiably burned). Max Supply is the best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency.
    • On the 1st of every month the top 10 updates to reflect more recent price changes.
  • Excluding stablecoins
    • Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some "stable" asset or basket of assets. A stablecoin can be pegged to a currency, or to exchange traded commodities (such as precious metals or industrial metals). Stablecoins backed by currencies or commodities directly are said to be centralized, whereas those leveraging other cryptocurrencies are referred to as decentralized.
  • Avaliable to trade via the Kyber Swap protocol
    • To swap tokens, the fund uses the Kyber Swap protocol to trade in a fully decentralized manner.
  • Exemption to market cap - WBTC & KNC
    • Wrapped Bitcoin (WBTC) is the first ERC20 token backed 1:1 with Bitcoin, which brings greater liquidity to the Ethereum ecosystem including decentralized exchanges and financial applications.
    • Kyber Network (KNC) is the current protocol the token fund uses to make all trades.

Weights

The token fund makes use of technical analysis to determine whether to enter or exit a position. The portfolio is weighted according to:

  • 10% - Dai stablecoin
    • The token fund uses Dai, a collateral-backed cryptocurrency whose value is stable relative to the US Dollar, as our holding cryptocurrency.
  • 63% - ERC-20 tokens
    • When a cryptocurrency under the token fund's watchlist trends bull/long then 6.30% (63/10) of the token fund converts from Dai into the trending cryptocurrency.
    • When a cryptocurrency under the token fund's watchlist trends bear/short then 100% of the trending cryptocurrency converts into Dai.
  • 27% - Ethereum
    • When Ethereum trends bull/long then the following calculation is used to determine the value of cETH the fund holds in a Ethereum via Compound:

    • cETH = Bullish Tokens / 10 X 27%
    • Once the fund has supplied Ethereum to Compound and received cETH, the fund borrows DAI from Compound in order to leverage positions at the ratio:

    • Borrowed DAI = cETH X 40%

    • When Ethereum trends bear/short then the following calculation is used to determine the value the fund will borrow in Ethereum via Compound:

    • Borrowed ETH = (10 - Bullish Tokens) / 10 X 27%
    • Once the Ethereum is borrowed it is immediately converted to DAI and repaid once Ethereum trends bull/long.


Digital Assets

Under the digital assets section, on the main page, individuals can view a summarized list of the basket of tokens, together with the estimated trend, date of consensus, and subsequent token trade.

Redemption

Withdrawals can be made by submiting a ticket under the contact section. Individuals need to include their Ethereum address & amount of LOT tokens they wish to redeem under the 'Message' section, together with 'Withdraw' under the 'Subject' section. Individuals will be notified once the trade order has been opened for their specific Ethereum address. This process will take up to 7days, due to arbitrage opportunities & portfolio rebalancing. Individuals will receive an 'order JSON snippet' via email, making use of the 0x protocol.

Management Fees

The token fund charges a management fee, in Dai, of 3% per annum, expressed weekly.

Fee = 0.03 / 52 X Portfolio Value

Fee reduction schedule:

Date%
January 20193.00%
July 20192.50%
January 20202.00%
July 20201.50%

Blockchain Terms

51 % Attack

A situation in which a majority of miners in the blockchain launch an attack on the rest of the nodes (or users). This kind of attack allows for double spending or stealing assets.

ABI

Application Binary Interface is an interface between two binary program modules, often one program is a library and the other is being run by a user.

Address

Address is used to send and receive transactions on the network.

Aggregated Transactions

Merging multiple transactions into one, allowing trustless swaps, and other advanced logic. Used in NEM.

Agreement Ledger

A distributed ledger used by two or more users to negotiate and reach agreement.

Alt-coin

Any cryptocurrency that exists as an alternative to bitcoin.

API

Application Programming Interface (part of a remote server that sends requests and receives responses)

Bitcoin

The first, and most popular cryptocurrency based off the decentralized ledger of a blockchain created in 2009.

Block Height

Number of blocks connected together in the block chain.

Blockchain

A mathematical structure for storing digital transactions (or data) in an immutable, peer-to-peer ledger that is incredibly difficult to fake and yet remains accessible to anyone.

Business logic layer

A part of code that determines the rules to be followed when doing business.

Business network card

Provides necessary information to connect a blockchain business network.

Risk Disclosure

Lothlor Token Fund is not a registered broker, analyst or investment advisor. Everything that we provide on this site is purely for guidance, informational and educational purposes. All information contained herein should be independently verified and confirmed. We do not accept any liability for any loss or damage whatsoever caused in reliance upon such information or services. Please be aware of the risks involved with any trading done in any financial market. Do not trade with money that you cannot afford to lose. When in doubt, you should consult a qualified financial advisor before making any investment decisions.

Disclaimer

Trading and investing in cryptocurrencies (also called digital or virtual currencies, crypto assets, altcoins and tokens) involves substantial risk of loss and is not suitable for every investor.

Any content on this site should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide when to trade our token. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Past results are no indication of future performance. In no event should the content of this correspondence be construed as an express or implied promise or guarantee.

Lothlor Token Fund is not responsible for any losses incurred as a result of trading our token. Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

None of the content published on this site constitutes a recommendation that any particular cryptocurrency, portfolio of cryptocurrencies, transaction or investment strategy is suitable for any specific person. None of the information providers or their affiliates will advise you personally concerning the nature, potential, value or suitability of any particular cryptocurrency, portfolio of cryptocurrencies, transaction, investment strategy or other matter.

The services and content that we provide are solely for educational purposes. The generic market recommendations provided by us are based solely on the judgment of our personnel and should be considered as such. You acknowledge that you enter into any transactions relying on your own judgment. Any market recommendations provided by us are generic only and may or may not be consistent with the market positions or intentions of our company and/or our affiliates. Any opinions, news, research, analyses, prices, or other information contained on this website are provided as general market commentary, and do not constitute an investment advice.

The products and services presented on this website may only be purchased in jurisdictions in which their marketing and distribution are authorised. Lothlor Token Fund advises all interested parties to check in advance whether they are legally entitled to purchase the products and/or services presented on this website.