Table of Contents:
- Checking the wallet address for collateralizing an opportunity
- Depositing collateral for an opportunity
- Receiving collateral from a closed opportunity
- Acting on a margin call
Checking the wallet address for collateralizing an opportunity
- Navigate to the opportunity page to find information about the opportunity.
- Under “Opportunity Information”, you will find the “Collateral Address” which contains the wallet address to which you should send the required collateral (according to the signed agreement).
Checking the amount of collateral required for an opportunity
- Navigate to the opportunity page to find information about the collateral.
- On the top of the page, check “Collateral Balance” to confirm the already allocated collateral amount as well as the required amount to fully collateralize the opportunity (i.e., “current allocation / required allocation”).
Depositing collateral for an opportunity
In order to complete this step, you must have already funded your company wallet on the Block Green platform. Please ensure that you are authorized to perform this transaction on behalf of your company and that the funds in your app wallet are sufficient to cover the on-chain collateral as well as transaction fees.
- After receiving the confirmation of opportunity funding, you have until 24h before the opportunity start date to deposit collateral.
- Navigate to the opportunity page to find information about the collateral.
- Under “Deposit Collateral”, add the required amount of collateral from your available balance to deposit. You can check the minimum amount of collateral required on the opportunity page.
- Click the “Deposit” button to review the transaction details.
- Validate the transaction details, including the wallet address from which you are transferring, the collateral wallet address, the deposit amount, and the estimated Bitcoin network fee.
- Click the “Initiate Funding” button to complete the process, or “Cancel” to return to the opportunity page.
Acting on a margin call
- The Block Green protocol automatically reconciles the rewards received from your mining pool account with the rewards that your allocated hashrate should deliver according to the daily hashprice of the Bitcoin network. We use the FPPS methodology for this calculation.
- In case that an opportunity is receiving lower daily rewards than expected, Block Green will proceed with the liquidation of an appropriate portion of the on-chain collateral to pay the expected daily rewards to the LP’s.
- You are expected to maintain a sufficient level of collateral for an opportunity, as detailed on the opportunity page. In case a liquidation event leads to an under-collateralized opportunity, Block Green will contact you via email to add collateral (”Margin Call”).
- You are required to deposit additional collateral to the corresponding opportunity within the next two business days to prevent a default of your opportunity
Receiving collateral from a closed opportunity
This process is automatically completed by the application.
- Navigate to the opportunity page to find information about the end date of an opportunity.
- Block Green will close automatically any successfully funded opportunities when the corresponding end date is reached.
- Block Green will proceed to transfer any deposited collateral that remains allocated to the opportunity to your user wallet when the end date is reached.
- Block Green will also transfer any surplus amount of mining rewards that has not been distributed to your user wallet after the end date has been reached.