Quote from: shinzai on December 11, 2017, 09:32:41 PM

Let's say I've bought 4000 JNT @ $0.25 each and then bought 1000 jUSD for them.

Scenario a: The JNT price goes down to $0.1 and I choose to convert my jUSD to JNT. You hold 4000 JNT with a value of $400. How will I be compensated for the remaining $600? You don't hold those tokens right?

Its best to think of the token mechanics it as the Jibrel DAO using JNT as Proof of Solvency.

We hold 1000 USD in the bank (hopefully post ICO, we hold more than that).
The Jibrel DAO holds JNT in reserves.

You come to exchange ~0.055 BTC (US$ 1,000) with the Jibrel DAO.

The Jibrel DAO already has 1,000 jUSD, backed by US$ 1,000 with Jibrel AG.
The Jibrel DAO uses JNT to prove solvency to you, as a jCash holder.

The Jibrel DAO gives you the 1,000 jUSD for your ~0.055 BTC, and exchanges the BTC for 4,000 JNT on an exchange - proving to you, it holds this value on-chain.

When JNT goes down in price. The Jibrel DAO needs to increase its Proof of Solvency.

Now instead of needing 4,000 JNT to prove solvency to your 1,000 jUSD it needs 10,000 JNT.

It needs to go to market for the remaining 6,000 JNT.
By doing so, it provides price support for JNT.

Jibrel AG, liquidates a bit of the cash backing the CryDRs, to prove solvency to you on-chain.

Because by JNT decreasing in price, the Jibrel DAOs demand for it increases, as long as JNT holds a non-zero value, the Jibrel DAO / Jibrel AG can stay solvent.

Quote from: shinzai on December 11, 2017, 09:32:41 PM

Scenario b: The JNT price goes up to $1. I convert my 1000 jUSD back to 1000 JNT. What happends with the remaining 3000 JNT I deposited?

Now the Jibrel DAO only needs to hold 1,000 JNT to Prove solvency to you.

If there is additional demand for jCash. People can exchange BTC directly for jCash, the BTC is then directly liquidated into Fiat, and the Jibrel DAO has sufficient JNT to prove solvency for the new fiat cash.

This system allows for sustainable growth, without the need for a high degree of trust / centralization.

Quote from: shinzai on December 11, 2017, 09:32:41 PM

4) Is the guarantor a bank?

In some cases, guarantors are for specific assets. So lets say youre a treasury bill broker, you can already sell treasury bills today. Why cant you sell them on-chain? By acting as a guarantor, you are merely porting your business, or bringing a small part of your business, on-chain.

Quote from: shinzai on December 11, 2017, 09:32:41 PM

5) How does your contract with the guarantor work? Do you pay them regularly and they in turn hold a sum of USD equal to the outstanding number of jUSD?

See above ^ we act as the software play for existing financial institutions, we tokenize their assets (using JNT to back it), and they use their own licenses to transact with their assets on-chain.

Quote from: shinzai on December 11, 2017, 09:32:41 PM

6) Let's say the JNT price skyrockets and all JNT holders then exchange their JNT for jUSD. At this JNT price alot more jUSD are minted and thus the guarantor will have to hold alot more USD. What if they are unable to aquire it?

This is the job of Jibrel AG / Jibrel DAO. To always remain solvent and always keep proof of this solvency on-chain.

This is the element of centralization (which is why we wrote without high degree of trust / centralization above, instead of full decentralization).

That being said, the JNT is transparent with the DAO. The contracts are audited by New Alchemy and the financial accounts will be periodically audited by PwC.

We seek to be fully regulated by relevant Capital Markets regulators (i.e. FINMA), so we hope to provide a transparent, and fair service.

Hope that helps answer your questions!