Partial Withdrawal

1. Partial Withdrawal This eventuality arises from members exhibiting good etiquette regarding their obligation to the turn group. In its most simplest description, good contributors will have the option of withdrawing the part of their collateral security above any that is covering their risk exposure to the turn group.

Factors Impacting Partial withdrawal.

• Participants may withdraw any surplus collateral as long as the minimum collateral available to them exceeds 1.5X their Remaining Cycle Contributions (RCC). This is time dependent meaning that as the turn group term progresses a participant's collateral value versus their RCC will proportionally increase as time lapses from cycle 1 through to cycle 4.

• Partial withdrawals are available to qualifying participants at the end of every cycle (monthly)

• Collateral security deposit is calculated as 1.5X RCC. In Daniel's case since he is the 1st recipient of the MP, his security deposit is 1.5X200 USDC=300USD equivalent in ETH (0.15 ETH)

For example:

Daniel is the 1st beneficiary in our turn group personas, and he is required to lodge collateral security of 0.15 ETH according to the requirements of the Takaturn 2.0 protocol.

The turn group’s risk exposure to Daniel at the beginning of the turn group term looks as follows:

Daniel - 0.15 ETH = $300 (at $2000/ETH)

Contr. Cycle 1*	+	Contr. Cycle 2	+	Contr. Cycle 3	+	Contr. Cycle 4	=	Risk exposure
50 USDC	+	50 USDC	+	50 USDC	+	50 USDC	=	200 USDC

*Daniel is exempt from this contribution since he is the MP beneficiary in Cycle 1 and Takaturn 2.0 allows this. Daniel's RCC is still considered to be 200USDC.

Let’s assume that Daniel makes his cycle contributions in cycle 2 & 3 as is his obligation. And his risk exposure looks as follows:

Contr. Cycle 4	=	Risk exposure
50 USDC	=	50 USDC

All else being equal and our assumptions holding, his collateral security as a proportion of his risk exposure to the turn group looks as follows:

ETH Collateral (USD Val)	/	Risk exposure	=	Collateral as a portion of risk
300 USD	/	50 USDC/USD	=	6X

Based on the rules stated earlier in this section (1.5x RCC) Daniel is now eligible for a partial withdrawal on his lodged collateral at the end of cycle 3. He can withdraw the qualifying portion of his collateral as follows:

Risk Exposure	X	1.5 X	=	Collateral required
50 USDC	X	1.5	=	75 USDC

Collateral Still Lodged	-	Collateral Required	=	Withdrawable Collateral
300 USD	-	75 USDC	=	225 USD worth of ETH

Should the above eventualities materialize, Daniel will be eligible to withdraw up to 225 USD worth of ETH from his collateral, together with any yield generated on the 225 USD of ETH over the period he was invested.

Partial withdrawals have the same effect on yield as a payment default

Daniel lodged 0.15 ETH as collateral security at the beginning of the turn term and he was required to lodge 1.5 X ETH because he is the 1st recipient of the money pot. Essentially he has collected the money pot and the group’s risk exposure to his possible default, for at least 3 months, is high. With this in mind it is also justified that once he pays his contribution, he becomes eligible for the part of his collateralized security not at risk anymore to become available for his consumption, how ever he wishes (he may choose to leave it as is and continue generating yield).

From the examples above it becomes evident that Daniel is overcollateralized by almost $175. Let's assume that Daniel decided to withdraw $50 @ $2000/ETH.

Daniel’s decision to withdraw partially has an impact on the collateral security pool plus yield of the collective turn group as well. The most immediate impact is that the pool is reduced by 0.025 ETH and 3 cycles of YG 3 x 0.00025ETH.

Member	Collateral withdrawn	YG Cycle 1	+	YG Cycle 2	+	YG Cycle 3	=	Total
Daniel	0.025	0.00025	+	0.00025		0.00025	=	0.00075

The new security deposit amounts and pool looks as follows:

Member	Remaining security deposit
Daniel	0.15 - 0.025 = 0.125 ETH
Fatima	0.140 ETH
Salat	0.130 ETH
Rudy	0.120 ETH
TOTAL	0.515 ETH

The original collateral pool and YG over cycle 1-3 looks as follows:

Member	Initial collateral amount	Yield on collateral Cycle 1	Yield on collateral Cycle 2	Yield on collateral Cycle 3	=	Total YG Cycle 1-3
Daniel	0.15 ETH	0.0015ETH	0.0015 ETH	0.0015 ETH	=	0.0045 ETH - 0.00025 = 0.00425
Fatima	0.14 ETH	0.0014ETH	0.0014 ETH	0.0014 ETH	=	0.0042 ETH
Salat	0.13 ETH	0.0013ETH	0.0013 ETH	0.0013 ETH	=	0.0039 ETH
Rudy	0.12 ETH	0.0012ETH	0.0012ETH	0.0012 ETH	=	0.0036 ETH
TOTAL	0.54 ETH	0.0054ETH	0.0054 ETH	0.0054 ETH	=	0.01595 ETH

From this snapshot and assuming that the monthly yield generated from the above, we will have the following scenario at the end of the turn group term:

Member	Initial collateral amount	Yield on collateral Cycle 1	Yield on collateral Cycle 2	Yield on collateral Cycle 3	Yield on collateral Cycle 4	-	Partial withdrawal	Total YG end of term
Daniel	0.15 ETH	0.0015ETH	0.0015 ETH	0.0015 ETH	0.00125 ETH	-	0.00025	0.0055
Fatima	0.14 ETH	0.0014ETH	0.0014 ETH	0.0014 ETH	0.0014 ETH			0.0056
Salat	0.13 ETH	0.0013ETH	0.0013 ETH	0.0013 ETH	0.0013 ETH			0.0052
Rudy	0.12 ETH	0.0012ETH	0.0012ETH	0.0012 ETH	0.0012 ETH			0.0048
TOTAL	0.54 ETH	0.0054ETH	0.0054 ETH	0.0054 ETH	0.00515 ETH			0.0211 ETH

Daniel’s decision has had the following impacts on the turn groups circumstances:

• Daniel’s proportional value of the overall collateral ETH pool reduces.

• Daniel’s proportional claim of yield generated at the end of the turn term reduces.

• The overall value of the Collateral security yield pool reduces by the amount of ETH liquidated from Daniel’s collateral.

Daniel is due part of the yield generated during cycles 1-3 since he still technically had 0.125 ETH left of his collateral security inside the YG protocol smart contract during cycle 1-3. After this turn group term ends and the original collateral that the participants lodged when joining the turn group, less any partial withdrawal claims and associated yield, must be returned to each of these participants.

The above combined YG will need to be allocated according to the new proportional ownership of the collateralised ETH pledged^. The final allocation in this case will be as follows:

Total ETH returned to each participant will be:

	Collateral security holdings		YG over turn group term		Total ETH returned to member
Daniel	0.125	+	0.0055	=	0.1305
Fatima	0.140	+	0.0056	=	0.1456
Salta	0.130	+	0.0052	=	0.1352
Rudy	0.120	+	0.0048	=	0.1248

From the above calculations and the calculations in both ‘Default in a Turn Group’ and ‘Normal Turn Group’ example together with the assumptions made, it is evident that Daniel’s decision has only really impacted his position whereas the rest of the participants in the turn group have not been prejudiced. The rules associated with the Takaturn YG module ensure that each participant remains responsible for their own actions.