Primary Market

For Creation and Redemption, can I cancel my requests? What if there’s a sudden drop in underlying asset's price in the market during the wait?

You cannot cancel your creation/redemption requests once submitted. The conversion between BTCB/ETH and Token QUEEN is designed for long-term holders/investors of crypto assets, who are usually not sensitive to the temporary fluctuations of the market price. If you want to enter and exit promptly, Tranchess Swap will be the better option for you.

What is settlement?

At 14:15 UTC every day, Tranchess protocol automatically calculates the main tranche's NAV (Net Asset Value) based on the oracle’s price feed, processes all creation and redemption requests received in the past 24 hours, and converts tokens accordingly.

Why is the daily settlement time for Creation and Redemption set at 14:15 UTC?

14:15 UTC is a time with the most global coverage, meaning that most of the world is awake at this time for timely actions if needed.

How long will the daily settlement last?

Normally, the daily settlement lasts for 15 minutes every day from 14:00 UTC to 14:15 UTC, during which the Create/Redeem and Split/Merge functions are temporarily suspended.
If a Rebalance happens, the settlement will take 12 hours. Primary Market functions, both Create & Redeem and Split & Merge, will be suspended from 14:00 UTC till 02:00 UTC on the next day.

What is the formula used when determining the amount of QUEEN a user can receive when creating?

AmountQUEEN=DepositingAssetAmount×TotalQUEEN+BISHOP+ROOKTotalAssetAmount×(1DailyProtocolFee) Amount_{QUEEN} = \frac{DepositingAssetAmount \times Total_{QUEEN+BISHOP+ROOK}}{Total AssetAmount \times \big(1-DailyProtocolFee\big) }
The formula used for all three funds is the same.

Can I buy Token QUEEN, BISHOP, and ROOK on some other exchanges? Why?

Right now, you can only trade Token QUEEN, BISHOP, and ROOK on Tranchess Swap. In the future, these three tokens might become available on other exchanges as soon as there’s enough technical support from them.

How are Token QUEEN, BISHOP, and ROOK’s prices and returns calculated in practice?

Token QUEEN, BISHOP, and ROOK will be traded at their Net Asset Values (NAV). Here’s a simple profit and loss illustration, assuming a daily interest rate of 1%, using BTC as the example:
Note: the daily interest rate is hypothetical and just for illustration purpose.

What happens if I buy Token QUEEN, split into BISHOP and ROOK, then sell BISHOP… Can I still merge back into QUEEN? How does it work? Where does BISHOP come from?

You will be holding only Token ROOK. If you want to merge back into QUEEN, you need to buy an equivalent amount of BISHOP through Tranchess Swap and submit the “merge” request.