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# Contractions & UBOND

### 1. "When can I swap $UNITE for$UBOND?"

$UBOND will only become available in the Pit following epochs in which the Time Weighted Average Price (TWAP) of$UNITE is under peg. This means that $UNITE's price will have had to have been under 1$ONE per 1 UNITE for the majority of the previous epoch in order to trigger the Pit to "open".
The Pit will always open at the very beginning of a new epoch, and remain open for the entire epoch — the Pit can not and will never open mid-epoch — and during epochs in which the Pit is open, $UNITE will not be printed in the boardroom. ### 2. "What is the formula to calculate the redemption bonus for$UBOND?"

To encourage redemption of $UBOND for$UNITE when $UNITE's TWAP > 1.1, and in order to incentivize users to redeem at a higher price,$UBOND redemption will be more profitable with a higher $UNITE TWAP value. The$UBOND to $UNITE ratio will be 1:R, where R can be calculated in the formula as shown below: $R = 1 +[(UNITEtwappring) -1)*coeff)]$ $coeff = 0.7$ To further illustrate why the longer you hold$UBOND the more profitable it is, let's take an initial $1000 investment into consideration. In this example, say this$1000 is used to buy $UNITE when$UNITE TWAP is 0.95 and then swapped for $UBOND. If these$UBOND are redeemed when: -$UNITE TWAP is 1.5, your investment would now be worth$1421. -$UNITE TWAP is 2, your investment would now be worth$1789. -$UNITE TWAP is 3, your investment would now be worth$2526. -$UNITE TWAP is 5, your investment would now be worth$4000.

### 4. "When can I swap $UBOND back to$UNITE?"

You can swap it back again when the following two criteria are met:
1: $UNITE TWAP is above peg and 2. There is enough in the treasury to cover it the redemption. ### 5. "Is$UBOND right for me?"

Like anything else in crypto, obtaining $UBOND is not risk-free. Just like in the real world, you are purchasing debt from the protocol with the expectation that you will be redeemed at a premium in the future. To date, this has occurred after all contractions, but past performance does not guarantee the same future outcomes.$UBOND is ideal for those with a medium to long-term time preference, as it incentivizes holding in exchange for potentially extremely lucrative rewards. If you are looking for a quick flip or have short-term time preference, \$UBOND may not be the right investment option for you.