FAQ
How do I use Neverlose.money?
1) Connect your wallet
You can connect with Neverlose.money via Metamask, Coinbase Wallet, Ledger, and Wallet Connect.
2) Lock-up your asset with a set target period
You can choose to lock-up your Bitcoin (WBTC), Ether (WETH), or HUNT asset with a set target period from 3 months to a maximum of 10 years. Once you approve and lock-up your asset, the fund will be locked via the smart contract with the set period.
3) Get constant bonuses during your lock-up period
While you continue your lock-up, you will get a bonus based on your effective share whenever some users fail to HODL and instead withdraw their funds within the lock-up period.
4) Avoid the penalty charge
You can withdraw your fund anytime you want, but you will get charged a 10% penalty if you break and withdraw the fund WITHIN the set lock-up period. This penalty fund will be shared with other users who are maintaining their active HODL assets. We believe that this gamified system will motivate all HODLERS on Neverlose.money platform. Also, an additional 3% of the broken amount goes towards the treasury fund, which will be used for the HUNT burning system.
5) Earn WARREN (WRN) Tokens
WARREN (WRN) is the governance token of the Neverlose.money platform. WRN tokens are distributed to the HODLERS (those who have active lock-up assets) proportional to each effective asset value.
Why do I need Neverlose.money?
Neverlose.money is designed for long-term cryptocurrency storage, called “HODL”. This investment strategy is simply based on the strong belief that the long-term value of the assets will eventually rise significantly. Due to the high volatility rate and often massive drops in prices, HODLING crypto assets is bristled with difficulties.
We have created a gamified social HODL protocol called Neverlose.money protocol. Its theoretical framework is based on the power of interconnected positive and negative reinforcement mechanisms by utilising the smart contract on Ethereum.
First, you’re joining the HODL protocol with other users bonded by the same game rule - locking up your asset with a set period and HODL it till that period ends. And all asset elements have the same reinforcement mechanism, ie paying a bonus to the winners (positive reinforcement) with the losers penalty (negative reinforcement).
You will be less likely to be swayed by short-term volatility because you will want to avoid paying the penalty and so you are more likely to maintain your position and gain the bonus from other users who failed to HODL.
How is the bonus calculated?
Whenever someone breaks the contract and withdraws his/her fund BEFORE the set lock-up period ends, the 10% penalty will be deducted from the fund and spread to the other active assets as a bonus. The bonus amount will be decided based on the Effective share ratio (ESR), a percentage that shows your proportion of active locked-up assets compared to all the locked-up assets in each token pool (it will be displayed on your dashboard after you lock-up your assets).
ESR is calculated by the multiplied asset amount which is weighted by the bonus multiplier based on your lock-up period. The weights range from x1 to x40 multipliers up to 120 months (10 years) as below:
Lock-up period | Bonus multiplier |
3 months | x1 |
6 months | x2 |
9 months | x3 |
1 year | x4 |
1 year and 3 months | x5 |
... | ... |
9 years and 9 months | x39 |
10 years | x40 |
Let’s check out the following example. There are three WETH holders as below:
100 WETH, 3 months
50 WETH, 6 months
10 WETH, 15 months
If someone breaks the contract and withdraws his/her fund with a total of 100 WETH amount then the penalty will be 10 WETH (10%). In this case, the ESR and the bonus distributions for each holder will be as below (based on the lock-up period multiplier table above):
100 WETH * 1 = 100 WETH, 40% ESR → 4 WETH bonus
50 WETH * 2 = 100 WETH, 40% ESR → 4 WETH bonus
10 WETH * 5 = 50 WETH, 20% ESR → 2 WETH bonus
If you have multiple locked-up assets and break & withdraw one of them, you will still be able to receive the bonus from the penalty generated from YOUR broken asset because you will still have a positive ESR after breaking one of them.
The bonus is generated whenever a locked-up fund is broken, but the amount will be pending until you claim it. In other words, the pending bonus on your dashboard needs to be claimed before you receive it via your wallet address. However, the pending bonus will be automatically claimed whenever you complete lock-up or withdraw transactions.
Can I withdraw my asset within the lock-up period (and what is the penalty and platform fee)?
Yes, you can withdraw your fund anytime you want even if the lock-up period has not been completed. However, the 10% penalty will be deducted from your fund if you withdraw your funds before your lock-up period ends. Also, an additional 3% of the broken amount goes towards the treasury fund, which will be used for the HUNT burning system. For example, if you have a 6-month lock-up for 100 WETH amount but you break/withdraw the fund within the 6-month period, a penalty of 10 WETH and a treasury fund of 3 WETH will be deducted when you receive your fund. This means that you will get 87 WETH (based on having 100 WETH at the time). Of course, there will be no fees when you withdraw AFTER the lock-up period due.
Neverlose.money belongs to the HUNT Network. The 3% treasury fund will be converted to HUNT token and added to the quarterly fee-based token burning model to increase the value of HUNT token. To learn more about the HUNT token model, please visit here - https://token.hunt.town/.
What is WARREN (WRN) token?
WARREN (WRN) is a governance token that will be used to manage the Neverlose.money decentralised community. WRN holders will be able to propose and vote on important issues such as, whether or not to add new asset pools, metric changes and modifications to operational policies to the Neverlose.money protocol/platform.
How are WRN tokens distributed?
The max total of 1,200,000 WARREN (WRN) tokens will be issued over the 8.8 million Ethereum blocks (~4 years). 0.5 WRN will be issued per Ethereum block for the first 500,000 blocks and then 0.1 WRN will be issued per Ethereum block for the following 8,300,000 blocks.
The generated WRN tokens will be allocated to each effective asset holder based on the effective asset amount shares and asset pool shares. The asset pool shares are as below:
WETH: 25%
WBTC: 25%
HUNT: 50%
(These asset pool shares can be changed and a new asset pool can also be added).
For example, if you have two active lock-up assets for WETH and HUNT with 50% effective share ratio (that appears on your dashboard) in each and the generated WRN per block is 0.5 WRN, your WRN allocations will be as below:
WRN for your WETH asset: 0.5 WRN x 0.25 pool shares x 0.5 your effective share ratio = 0.0625 WRN
WRN for your HUNT asset: 0.5 WRN x 0.5 pool shares x 0.5 your effective share ratio = 0.125 WRN
The WRN tokens are distributed automatically, but the amount will be pending until you claim it. In other words, the pending WRN on your dashboard needs to be claimed before you receive it via your wallet address. However, the pending WRN will be automatically claimed whenever you complete lock-up or withdraw transactions.
10% of the total generated WRN tokens will be allocated to the dev team in order to maintain/improve the Neverlose.money protocol, and so they can participate in the governance.
Is Neverlose.money safe? Has it been audited?
Neverlose.money smart contracts have audited by HAECHI LABS, one of the top security auditors.
Audit reports - https://github.com/Steemhunt/neverlose.money-contract/tree/main/audits
Also, the security of the protocol is our top priority, so we have put a lot of effort into reviewing possible risk scenarios. However, it doesn’t mean that using Neverlose.money comes without risks.
Please use Neverlose.money at your own risk. You may meet unexpected smart contract issues. Please do your own research before deciding to use this platform. All contract code and balances are publicly verifiable. We are not liable for any financial loss.
What are the additional risks?
1. Upgradable Smart Contract
Neverlose.money's smart contracts follow OpenZeppelin's proxy upgrade pattern (EIP-1967: Standard Proxy Storage Slots), which means the contracts may upgrade if critical issues or bugs are found. The upgrade key to the contract is managed with Safe Multisig, and this permission will be removed when the contract is deemed to be stable and mature.
2. Emergency Stop Function
The admin account can call emergencyStop() function which disables all functionality when a critical issue is found. emergencyResume() function can also be called to resume all functionality once all issues are resolved.
Once the contract deems to be stable and mature, all smart contracts functions on Neverlose.money will revoke admin rights to remove the risk of centralized authority and make this protocol fully decentralized.
Will locking-up my assets on Neverlose.money guarantee profits?
Of course NOT. This protocol is for people who strongly believe that the long-term price for the assets that are listed on the platform will eventually rise. However, the actual price may not be followed by your expectations. During your lock-up period, the asset value in fiat money can fluctuate and may fall down. Please be fully aware of the volatility risk in the crypto assets. The protocol never guarantees your profit.
Will I get the bonus for sure?
Of course NOT. The bonus is generated only when someone breaks and withdraws his/her locked-up asset before the lock-up period is due. If no one breaks and everyone successfully continues his/her lock-up, you won’t have any bonus.
Pending bonus and WRN is suddenly gone. Why?
Whenever you make a new transaction such as locking-up a new asset, unlock or break the locked-up asset, the pending bonus and WRN in the same asset pool will be automatically claimed together. For example, if you make a new lock-up asset of WETH, the pending WETH bonus and pending WRN from the WETH asset pool will be claimed with the lock-up transaction. Other pending bonus and WRN (in the case above - WBTC or HUNT) won't be affected.
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