Retention rate

In case of coin price surges, the default risk will rise and Merlin must take more retention to make sure of clients' asset security. Vice versa, the platform can give more assets to the issuing side during the coin price falls.

The platform will determine the asset retention ratio according to the risk indicator, which inflects all factors regarding the default rate, at the end of the issuance period.

The retention ratio:

$R = 0.65 + 0.5 * (R-0.246)$

After this process, the retention will be kept up and sent to the issuer equally in the following year, and the rest will be sent to the issuer directly.