Deposit and Withdrawal Examples

Depositing

Scenario Overview:

• Total Index Value: $3,000,000

• Total GMI Supply: 2,000,000 GMI ($1.50 each)

• Total gmETH Value in Index: $1,100,000

• gmETH Price: $1.32/token

• gmETH Target Weight Ratio: 0.4

• Fees: Minimum 33 bps, Base 100 bps, Tax 60 bps

User Action: A user buys $20,000 worth of gmETH, equivalent to 15,152 tokens, and deposits these into the GMI Index.

Fee Calculation:

• Initial gmETH Bank Balance: 833,333.33 tokens

• gmETH Target Balance after Deposit: 915,151.52 tokens

• Initial Difference: 81,818.18 tokens

• New Bank Balance after Deposit: 848,485.33 tokens

• New Difference: 66,666.19 tokens (reduced difference implies beneficial transaction)

Fee Adjustment:

• Rebate: 5.364 bps calculated from the reduction in difference

• Final Fee Bps: 94.64 (100 bps - 5.364 rebate)

• Fee Amount: $126.20 calculated from the GMI mint amount of 13,333.33 tokens

Deposit Reflection:

• Reflection: $75.72 (60% of fee)

• USDC Looping Liquidity: $50.48 (40% of fee)

During Liquidity Provision

The user’s GM assets accumulate reflections from ongoing transactions, enhancing their value within the Index.

Time-Elapsed Overview:

• Total Index Value: $50,000,000

• Total GMI Supply: 25,000,000 GMI ($2.00 each)

• Total gmETH Value in Index: $10,000,000 (price increase to $1.50/token)

• GMI Volume since Deposit: $300,000,000

• Total Reflections: $1,609,157 (from 60% of accumulated fees)

Withdrawing

Withdrawal Fee Calculation:

• Current gmETH Weight in Index: 0.2 (target is 0.4)

• gmETH Withdraw Value: $26,666.67

• gmETH Withdraw Amount: 17,777.78 tokens

Fee Adjustment for Withdrawal:

• Average Difference: 6,668,444.43 tokens

• Tax Bps: 30.024 calculated based on worsening the Index balance

• Final Fee Bps: 130.324 (100 bps + 30.024 tax)

• Fee Amount: $231.69 calculated from the withdrawal

Withdrawal Reflection:

• Reflection: $139.01 (60% of fee)

• USDC Looping Liquidity: $92.68 (40% of fee)