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CHRONOBANK - PHASE 1: A NON-VOLATILE DIGITAL TOKEN BACKED BY LABOUR-HOURS 9 Appendix A. Terminology The following is a list of terms used throughout this document. • CBE - The ChronoBank Entity. • LHT - Labour-Hour Token. • LOC - Labour-Offering Company. • SGF - Security Guarantee Fund. Appendix B. Minting Contract Parameters There are number of parameters that are required to be negotiated during the minting process. For clarity we list here the variables that should be considered and determined by the CBE during the minting process: • S - A percentage of the minted tokens to be stored in the Security Guarantee Fund. • LT - The total percentage to be stored in the liquidity fund. • l - The percentage of LT dictating how much of the liquidity fund is used as LOC insurance, LI. The remaining funds will be kept for liquidity in L0. • M - The total number of months until the LOC Insurance LI is transferred to the Security Guarantee Fund. This dictates the rate at which the funds are transferred, i.e. LI/M per month. • Expiry Date - The expiry date of the contract, whereby the LOC must buy back the value of the minted LHT. Through the definition of the above variables, the CBE on a case-by-case basis will fix ρ, the total percentage deducted from LOCs initially through the relation (2). Appendix C. Fee Summary The fees of the ChronoBank system can be summarised in the following: • fc - This is the fee taken by the CBE during the minting process for services rendered. We expect fc ∈ [0, 0.01]. • fi - This is the issuance fee, which will be taken during minting and deposited into the TIME token holder’s rewards contract. This will start at 3 percent and decrease by 1 percent each year until it is maintained at a steady 1 percent. • ft - These are transaction fees, which are deposited into the TIME token holders rewards contract. This is a flat fee of 0.15%. • fr - This is a fee taken by the CBE during the redemption process for services provided and to add a deterrent to continual redemption requests. We expect fc ∈ [0, 0.01].

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