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How Straato Works: Summary​

Straato Market Hours​

The Straato Market is closed for the night from 5am through 12pm UTC or 12am – 7am EST. No trading can occur when the Market is closed.

Purchasing Credits​

In order to participate in the Straato Market, you must purchase “credits” in your Dashboard via Paypal. Straato credits are 1:1 with USD and provide a more seamless payment experience. When ready to convert your accrued credits back into USD, you may simply payout at any time in your Dashboard, via your Paypal account. Straato Digital Assets: The goal of the Straato Market is to eventually trade equities. However, due to regulatory and liquidity concerns, the Market is now exclusively for the trading of Straato (digital assets) that exist only on our platform.

Economic Principle​

Straato have no inherent value, other than their ability to be traded inside the Straato Market. The Straato Market operates on the principle that “financial value is solely derived from demand”. Exchange Mechanism: Straato are exchanged via a mechanism called the Offer Queue. Traders list Straato on the queue to be sold and other traders buy them off the front of the queue. The Offer Queue orders Straato by ascending price. Minimum Price Floor: The Offer Queue enforces a minimum price floor such that new offers must always be priced higher than previously sold Straato in the current market “cycle.” This eliminates Market noise through “volatility encapsulation.”

Cycles​

The Straato Market is divided into trading periods called cycles. During these cycles, the minimum price floor (as described above) persists.

Reset​

The Straato Market tracks supply and demand. When either supply or demand exits a public range, the Market minimum price floor temporarily lapses until the next asset is purchased. This process, called a reset, is how one cycle ends and a new cycle begins.

Fees​

There are no cash fees in the Straato Market (other than Paypal processing fees when purchasing credits) – fees are assessed as a small percentage of the number of Straato that you own in order to trade in a new cycle. Think of this as a market making fee.